Wednesday, December 30, 2009

How to figure outcome of one unit composed of 3 differently weighted variables?

Factor A = 40% (is composed of 5 smaller parts)


Factor B = 35% (is composed of 1 part)


Factor C = 25% (is composed of 1 part)





Sometimes Factor A is very good, Factor B is average, Factor C is poor





Sometimes Factor A is average, Factor B is poor, Factor is very good.





Sometimes Factor is poor, Factor B is very good, Factor C is average.





Sometimes all 3 Factors are very good, average or poor.





How do you make a formula to weigh the 3 Factors according to their weighted percentages contributing to the Outcome as a Whole?





Thanks.How to figure outcome of one unit composed of 3 differently weighted variables?
Outcome = 0.4A + 0.35B + 0.25C


This is a standard way of doing weighted percentages. All of the other parts of the question have no bearing on the problem.

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