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How to Calculate Weighted Variance

A weighted sample variance differs from an arithmetic sample variance because it includes weighting of each data point. In order to calculate the weighted sample variance, the weighted sample mean must be calculated. The weighted sample mean is simply the sum of the data points multiplied by their corresponding weights, and divided by the total weight. This value is then used to calculate the weighted sample variance.

Things You'll Need

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Instructions

    • 1

      Follow this example. Write the sample data in a column and the corresponding weight for each data point in another column. The weights should add up to 100.

      10 = 20

      23 = 10

      57 =30

      75 = 20

      92 = 20

    • 2

      Calculate the weighted mean by multiplying each data point by it's corresponding weight. Add each resulting value together and divide by the total weight, which is 100.

      Numerator = (10*20)+(23*10)+(57*30)+(75*20)+(92*20)) = 5480

      Denominator = 20+10+30+20+20 = 100

      Weighted Mean = 5480/100 = 54.8

    • 3

      Calculate the weighted variance by subtracting each data point from the weighted mean. Square this value and multiply by the corresponding weight. Add all of the values together and divide by the total weight.

      Numerator =(20*(10-54.8)^2)+(10*(23-54.8)^2)+(30*(57-54.8)^2)+(20*(75-54.8)^2)+(20*(92-54.8)^2) = 86,236

      Denominator = 100

      Weighted variance = 86,236/100 = 862.36

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