I have a hard time understanding the following Problem:
I want to calculate the weighted average of two ratios. The Ratio is based on percentages.
As example: 30% of 1,15 and 70% of 1,45. What is the weighted Ratio? My understanding was that I would calculate like this:
(0,3 x 1,15) +(0,7 x 1,45) = 1,36
However I have seen a different calculation that is doing the following:
1 / ((30%/1,15) + (70%/1,45)) = 1,344758
I don't understand why there is a difference between the two. As for example with an even Distribution of 50% or 0% and 100% both ways Show the same result. However for all other ratios there is a slight difference.
I am lost.
Thank you very much.