Weighted Average and Interest Rates

This lecture covers the calculation of a weighted average without using the reciprocal as weighting. The instructor explains the complexity of using different weights and simplifies the process by using payments as weights. The concept of the I02 rate is introduced as an annual rate equivalent to the total investment period. The lecture also delves into the interpretation of I02 as the geometric mean of interest rates, emphasizing the importance of weighted averages in financial calculations. Additionally, the instructor demonstrates the calculation of average prices and discusses the significance of median and mode in statistical analysis.