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Explain the difference between weighted average and geometric mean...

Explain the difference between weighted average and geometric mean...

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Answer #1

Weighted average is a form of airthemetic mean where each value has a certain weight associated with it where geometric mean is the root n of product of n obs

Example:

Variable (X) Weight (W) V*W
10 5 50
15 10 150
20 7 140
25 3 75

Weighted mean = sum(V*W)/sum(W)

Weighted mean = 415/25

Weighted mean = 16.6

Geometric mean of 10, 15, 20, 25

Geometric mean = ( 10*15*20*25)^(1/4)

Geometric mean = 75000^(1/4)

Geometric mean = 16.54

The methodology is different for the two

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