Weighted Average Calculation: Finding Hotel Rating from 50%, 30%, 10% Factors

Question

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:

SatisfactionCleanlinessServiceBreakfastRatingWeight50%30%10%10%4.5453

Determine the hotel's overall rating?

Video Solution

Step-by-Step Solution

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:

50%+30%+10%+10%=100% 50\%+30\%+10\%+10\%=100\%

Now we must multiply each factor by its weight percentage, convert the percentages to decimal numbers, and add them as follows:

4.5×0.5+4×0.3+5×0.1+3×0.1= 4.5\times0.5+4\times0.3+5\times0.1+3\times0.1=

We then proceed to solve the multiplication exercises:

2.25+1.2+0.5+0.3= 2.25+1.2+0.5+0.3=

Finally we add them up and obtain the following: 4.25 which is the hotel's overall rating.

Answer

4.25