A hotel's overall rating is determined according to a weighted average of several categories. Each category is given a rating and a weighted factor. Below are the ratings for the "Happy Tourist" hotel:
Determine the hotel's overall rating?
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A hotel's overall rating is determined according to a weighted average of several categories. Each category is given a rating and a weighted factor. Below are the ratings for the "Happy Tourist" hotel:
Determine the hotel's overall rating?
In order to determine the hotel rating, we must calculate an average.
Below is the weighted average formula:
(value A X weight percentage A)+(value B X weight percentage B)...
First, let's add up all the percentages:
Now we must multiply each factor by its weight percentage, convert the percentages to decimal numbers, and add them as follows:
We then proceed to solve the multiplication exercises:
Finally we add them up and obtain the following: 4.25 which is the hotel's overall rating.
4.25
Norbert buys some new clothes.
When he gets home, he decides to work out how much each outfit cost him on average.
What answer should he come up with?
Because the categories have different levels of importance! Satisfaction counts for 50% while Service only counts for 10%. A weighted average gives more influence to the more important categories.
Simply divide by 100 or move the decimal point two places left. For example: 50% = 50 ÷ 100 = 0.5, and 10% = 10 ÷ 100 = 0.1.
Always check that your weights sum to 100% first! If they don't, there might be missing categories or an error in the problem. In this case: 50% + 30% + 10% + 10% = 100% ✓
The percentage tells you how much each category contributes to the final rating. Multiplying means Satisfaction contributes 2.25 points to the overall rating.
Yes, but it's trickier! You'd calculate . Converting to decimals first is usually easier and less error-prone.
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