What is a weighted mean?

A weighted mean is a specific type of average that accounts for the significance or importance of each data point rather than treating all data points equally. In this context, each component in the dataset is assigned a weight that reflects its proportional relevance to the overall calculation. This means that values with higher weights will contribute more to the final average, while those with lower weights will contribute less. Such a calculation is particularly useful in scenarios where certain scores or measurements are more relevant than others, providing a more accurate reflection of the dataset's overall characteristics.

This concept is seen in various applications, such as calculating grades where different assignments may have different levels of importance, or in economic indicators where different sectors of the economy might contribute unequally to a presented average. The weighted mean enhances the understanding of data by incorporating the varying significance of each element, thus offering a more nuanced perspective than a simple arithmetic average.