Weight in gold

Not all averages are equal. The weighted-average can give more representation to some variables over others.

When we consider prices, does it make sense to use a normal arithmetic average? An average of price would simply take the sum of prices and divide it by the total number of loans.

A weighted-average would give more representation to larger loans which would produce more dollar price amount, than smaller loans.

If you have lost progress, close any open workbooks and load 2_4_trade_premium_solution.pbix from the Exercises folder on the Desktop.