The standard deviation is a measure that indicates the extent to which the peaks and troughs of a wave differ on average from the mean voltage. A large standard deviation is a measure of large amplitude waves, i.e., on average the peaks and troughs differ by a large extent from the mean voltage.
The weighted average formula is used to calculate the average value of a particular set of numbers with different levels of relevance. The relevance of each number is called its weight. The weights should be represented as a percentage of the total relevancy. Therefore, all weights should be equal to 100%, or 1.
This formula adds all of the numbers and divides by the amount of numbers. An example would be the average of 1,2, and 3 would be the sum of 1 + 2 + 3 divided by 3, which would return 2. However, the weighted average formula looks at how relevant each number is. Say that 1 only happens 10% of the time while 2 and 3 each happen 45% of the time. The percentages in this example would be the weights. The weighted average would be 2.35. The weighted average formula is a general mathematical formula, but the following information will focus on how it applies to finance. Use of Weighted Average Formula The concept of weighted average is used in various financial formulas.