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SEC Form 4 OMB APPROVALUNITED STATES SECURITIES AND EXCHANGE COMMISSIONFORM 4Washington, D.C. 20549 OMB Number:32350287Estimated average burdenSTATEMENT OF CHANGES IN BENEFICIAL OWNERSHIPCheck this
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01
Identify the items or data points you want to average.
02
Determine the weight of each item, which reflects its importance or frequency.
03
Multiply each item's value by its corresponding weight.
04
Add all the weighted values together.
05
Divide the sum of the weighted values by the total of the weights to get the weighted average.

Who needs represents a weighted average?

01
Businesses analyzing sales data to account for different product sizes or sales volume.
02
Students calculating their overall grade with different weightings for assignments and exams.
03
Researchers conducting statistical analysis where certain data points are more influential than others.
04
Financial analysts evaluating investment portfolios where different assets have varying levels of importance.
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A weighted average is a calculation that incorporates the relative importance or weights of different values, allowing for more accurate representation of data where certain values contribute more significantly to the overall average.
Generally, entities or individuals that are using weighted averages in their financial reporting or analyses, such as businesses assessing performance metrics, may be required to file documentation that includes weighted average calculations.
To fill out a weighted average, you identify the values and their corresponding weights, multiply each value by its weight, sum these products, and then divide by the total of the weights.
The purpose of a weighted average is to provide a more accurate representation of a set of data by prioritizing the impact of certain values over others, which is useful in various fields such as finance, statistics, and education.
Information that must be reported includes the specific values being averaged, their associated weights, the calculated weighted average result, and any relevant context or assumptions made during the calculation process.
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