Business Stats?

Question

During the past six months, the purchasing agent bought:

Tons of coal= 1200,3000,500

Price/ton= 28.50,87.25,88.00

What is the weighted arithmetic mean price per ton?

a. $87.25

b. $72.33

c. $68.47

d. $89.18

e. 67.92

Answer 1

there is a total of 4700 tons of coal purchased

the weighted arithmetic mean is:

(1200 / 4700) * 28.50 + (3000 / 4700) * 87.25 + (500 / 4700) * 88.00

= 72.32979

Answer 2

The weighted average means to take in account how many tons of coal are bought at each price point.

Find the total amount paid at each cost rate.

1200 * 28.5  +  3000 * 87.25  +  500 * 88 =

This gives you the total cost.

Then divide the total cost by the total number of tons purchased to get the weighted average.

I will let you do the math.