# Consider the following outputs based on fitting a weighted arithmetic mean (WAM) and a weighted power mean

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## Question:

Consider the following outputs based on fitting a weighted arithmetic mean (WAM) and a weighted power mean with p = -2 (PM)

**WAM**

RMSE 0.1088

Average L1 error 0.0979

Pearson correlation 0.8871

Spearman correlation 0.8968

i w_i

1 0.2846

2 0.3692

3 0.1538

4 0.1924

**PM**

RMSE 0.0637

Average L1 error 0.0517

Pearson correlation 0.9483

Spearman correlation 0.9488

i w_i

1 0.2750

2 0.3375

3 0.1875

4 0.2

Define the data that was used for fitting?

**Related Book For**

## Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary