Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

weighted _ profit _ margin = np . average ( profit _ margins, weights = ai _ adoption _ rates / 1 0 0 )

weighted_profit_margin = np.average(profit_margins, weights=ai_adoption_rates /100)
In the code provided, np.average calculates the weighted average profit margin. What does the weights parameter signify, and how does it influence the weighted_profit_margin?
The weights parameter uses the Al adoption rates to give more weight to companies with higher adoption in the profit margin average, showing a preference for Al-heavy companies.
The weights parameter applies an inverse weighting of profit margins by Al adoption rates, decreasing the weight of companies with higher adoption rates in the average calculation.
The weights parameter assigns a measure of significance to each profit margin based on its occurrence, inversely related to the Al adoption rates.
weights gives equal importance to all profit margins, resulting in a simple arithmetic average, no different than if np.mean were used.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Behavioral Finance And Asset Prices

Authors: David Bourghelle, Pascal Grandin, Fredj Jawadi, Philippe Rozin

1st Edition

3031244850, 978-3031244858

More Books

Students also viewed these Finance questions

Question

9. Describe the characteristics of power.

Answered: 1 week ago

Question

3. Identify and describe nine cultural value orientations.

Answered: 1 week ago