Average value: refers to the quantity representing the trend in a set of data, and refers to the sum of all the data in a set of data divided by the number of this set of data. It is an indicator reflecting the trend of data concentration.

Weighted average: the size depends not only on the value (variable value) of each unit in the population, but also on the frequency of each value. Because the frequency of each value plays a role in weighing its influence in the average, it is called weight.

2. Different algorithms

Average value: the sum of all data in a set of data divided by the number of data.

Weighted average: multiply each value by the corresponding weight, then add up to get the total value, and then divide it by the total number of units.

3. Different advantages

Average value: It can make use of the characteristics of all data and is relatively easy to calculate. In addition, in mathematics, the average value is a statistic that minimizes the sum of squares of errors, that is to say, using the average value to represent data can minimize the secondary loss. Therefore, the average value is a commonly used statistic in mathematics.

Weighted average: it plays an important role in life practice and has great influence, and tends to rationalize events that cannot explain fairness. In line with Scientific Outlook on Development.

Extended data:

App application

There are many forms of "weight" in weighted average, and because. Right "changes, the result will be very different, this particularity, more and more attention by people, the application is more and more extensive.

Futures application

On the one hand, if the futures price is higher than the weighted average price, the latter is moving up slowly or quickly, which means that the market situation will easily rise, but it is difficult to fall or continue to improve. On the contrary, if the futures price is lower than the weighted average price, the latter will move down slowly or quickly, which means that the market situation will be easy to fall but difficult to rise or continue to fade.

On the other hand, if the futures price is higher than the weighted average efficiency, the latter runs in a narrow range or downwards. In other words, the market will slow down or turn around.

On the contrary, if the futures price is lower than the weighted average price, the latter will run in a narrow range or upward, which means that the market situation will slow down the decline or turn around and pick up. The reason is that futures prices cannot be supported by the same moving direction of the weighted average due to the upward trend or downward trend, and the space for restarting or falling again will become limited. It should be noted that the weighted average will pull the futures price and prevent it from expanding.

Therefore, we should pay attention to the change of the gap between the futures price and the weighted average price, and observe the opportunities of entering and leaving when the gap is too narrow or too wide. If the market situation is still rising or falling, the narrow gap can provide a good opportunity to make the market better or worse.

Baidu encyclopedia-weighted average

Baidu Encyclopedia-Average