The rule
weighted average = Σ(value × weight) ÷ Σ(weights)
Why it works
A weighted average lets each value contribute in proportion to its weight rather than equally. Multiply each value by its weight, add those products, and divide by the total weight.
How to do it by hand
- Multiply each value by its weight
- Add all those products
- Add all the weights
- Divide the first total by the second
What is worth knowing
The plain average is the special case where every weight is the same, which is why the two agree when the weights are equal. Weighted averages turn up wherever contributions differ in importance: course grades where the exam counts more than the coursework, portfolio returns weighted by how much is invested in each holding, and price indices weighted by how much of each good people actually buy. The weights need not add to 100 — only their proportions matter, which is why 30/50/20 and 3/5/2 give the same answer.