How can I tell whether a displayed average is weighted or unweighted?
Quick answer
Ask how the combined figure was calculated and whether each group’s number of observations affected its contribution. A weighted average gives larger groups more influence; an unweighted average of group averages gives each group equal influence. To check the result, request each group’s average and observation count, or its total and count, along with the stated calculation method. [S1]
The question, the details, the next step.
A practical checklist
Identify the groups included in the displayed figure.
Request each group average and its observation count, or its total and count.
Ask whether each group is equally weighted or weighted by its observation count.
Check that the counts refer to the observations behind the stated averages.
Ask which groups and observations were included when comparing your calculation with the displayed figure.
A few more useful answers
Does “average of the group averages” always mean an unweighted average?
It means each listed group average contributes equally to that calculation. That may differ from an overall average across all observations when group sizes differ.
Can I calculate an observation-weighted average from group averages alone?
Not generally: you also need the number of observations represented by each group average, or equivalent totals and counts. Without those, you cannot determine how much each group should contribute.
Sources
References used for this guide.
- [S1] Measures of Center — OpenStax Principles of Finance openstax.org · Checked
