Weighted harmonic mean, Applied Statistics

Assignment Help:

Weighted Harmonic Mean

Weighted Harmonic Mean is calculated with the help of the following formula:

WHM


2303_weighted harmonic mean.png

Case 1

 

 

Consider a company consisting of only two divisions A and B. The calculation of the net profit margin for the two divisions as well as for the company as a whole is shown below:

 

Division A

Division B

Whole company
(A + B)


Net profits  (Rs. crore)

6

1

7

Sales (Rs. crore)

40

40

80

Net profit margin

15%

2.5%

8.75%                                          


Here we see that the net profit margin for the company as a whole is 8.75% which is nothing but the Simple Arithmetic Mean of the net profit margins of the two divisions A and B.

722_weighted harmonic mean1.png

So the simple arithmetic mean has a significance here. Note that the net profit margins of the two divisions A and B have been calculated with the same denominator (Sales = Rs.40 crore). In general, we can say that the appropriate mean for a set of ratios which have been calculated with the same denominators is the simple arithmetic mean.

 


 

 

 

 


Related Discussions:- Weighted harmonic mean

Econometrics, The following data on calcium content of wheat are consistent...

The following data on calcium content of wheat are consistent with summary quantities that appeared in the article “Mineral Contents of Cereal Grains as Affected by Storage and Ins

Inverse cumulative distribution function, The Null Hypothesis - H0: β0 = ...

The Null Hypothesis - H0: β0 = 0, H0: β 1 = 0, H0: β 2 = 0, Β i = 0 The Alternative Hypothesis - H1: β0 ≠ 0, H0: β 1 ≠ 0, H0: β 2 ≠ 0, Β i ≠ 0      i =0, 1, 2, 3

Eco203, Waht is the product of £ x

Waht is the product of £ x

Interaction of enviornment and gene , entropy test to measure interaction b...

entropy test to measure interaction between enviornmental factors and genes

Calculate the length of the rope, The tension, T, in the tow rope pulling t...

The tension, T, in the tow rope pulling the car in Newtons is given in P8.  Determine the minimum length of the rope l, between A and B, so that the tension in either AB or AC equa

Mode, Mode The mode is the value which occurs most frequ...

Mode The mode is the value which occurs most frequently in a set of observations on the point of maximum frequency and around which other items of the set cluste

Root mean square deviation, Root Mean Square Deviation The standard d...

Root Mean Square Deviation The standard deviation is also called the ROOT MEAN SQUARE DEVIATION. This is because it is the ROOT (Step 4) of the MEAN (Step 3) o

Random sampling method, Random Sampling Method In this method the units...

Random Sampling Method In this method the units are selected in such a way that every item in the whole universe has an equal chance of being included. In the words of croxton

Harmonic mean, Harmonic Mean  The harmonic mean  also called harmonic  ...

Harmonic Mean  The harmonic mean  also called harmonic  average, in the total numbers of items of variable divided by the sum of r reciprocals of the values of the variable. In

Decision making ., it is said that management is equivalent to decision mak...

it is said that management is equivalent to decision making? do you agree? explain

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd