With the weighted percentages, is it right that one?
With the weighted percentages, is it right that one sub-category is weighted so heavily, that it can go "negative," & draw down the other subcategories down - beyond a zero impact ?
By
benson
Posted on
06/24/08 Total Answers
1
Answers-
Yes, assuming that the values of that sub-category are negative.
For example, if you have three categories:
A = 5
B = -1
C = 2
Now, if they were weighted as follows:
A = 30%
B = 30%
C = 40%
Then your average is:
(0.3)(5) + (0.3)(-1) + (0.4)(2) = 2
But if you weight them differently, you can get negative values. Try the weighting:
A = 10%
B = 80%
C = 10%
The average changes to:
(0.1)(5) + (0.8)(-1) + (0.1)(2) = -0.1
Answer by :
cheeser1234567890 On Date
2008-06-27 12:31:15
