Weighted Average

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Weighted Average

An average in which some values count for more than others. For example, if an index consisting of 10 stocks is weighted for price, this means that the average price of the stocks will move more when the stocks with higher price move. Most indices use weighted averages so that "smaller" values do not affect the index inordinately. This helps correct for the fact that averages tend to be affected by extreme values. One of the most common ways of weighting an average is to weight for market capitalization.
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References in periodicals archive ?
This year, seven Dry Freight haulers toped the 33.47 overall weighted average, led by Crete Carrier Corp with a 36.57 weighed average-a 2.73 point improvement from its 2007 winning score.
Survey mainstay Norfolk Southern pulled in second with an overall weighted average of 34.73, scoring top marks this year in Information Technology (4.44).
However, if there is capture, foundries "need a control device to meet 0.005 gr/dscf as a flow weighted average for pouring, cooling and shakeout exhausts," Schmeisser said.

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