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In weighted average formula, we divide by the TOTAL number of elements.
For example Group A has an average of 40 boxes and Group B has an average of 60 boxes. The total number of people in group A and B are 10 and 20 respectively. What is the combined average or total average of the two groups?
Total boxes (A)= 40*10= 400 Total boxes (B)= 60*20= 1200
Total boxes (A+B)= 1600
Therefore average= 1600/30= 53.33
My question is when we find the total of two groups and then find their average. Why don't we divide the combined total by 2 as now there a two entities of which we have to find an average? Why do we combine the total no. of people and then divide?
Thanks.
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We found the total number of boxes in (A+B) as 1600 If we are diving this 1600 by 2 then we will get average number of boxes (NOT per person) of two entities A (400 boxes) and B (1200 boxes) But we are interested in finding what is the combined average, as per the question the combined average is defined as the number of boxes in a group per person, so we need to divide the total number of boxes (A+B) = 1600 by the total number of people in both the groups (A+B) = 30 to get the Combined Average of the two groups (per person) = 1600/30 = 53.33
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