Thread: Weighted Averages

Hi,
Ok, if for example i purchased a car. There would be a total cost but if i split the parts off an average would make the engine worth the same amount as a wheel nut. How could i know how much each item actually cost me. I have read that weighted avearges are what i need.
Thanks

Originally Posted by benhathaway

Hi,
Ok, if for example i purchased a car. There would be a total cost but if i split the parts off an average would make the engine worth the same amount as a wheel nut. How could i know how much each item actually cost me. I have read that weighted avearges are what i need.
Thanks

This is the formula for weighted averages:





EDIT: It could just be me... But the question doesn't make much sense to me.