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weighted _ profit _ margin = np . average ( profit _ margins, weights = ai _ adoption _ rates / 1 0 0 )
weightedprofitmargin npaverageprofitmargins, weightsaiadoptionrates
In the code provided, npaverage calculates the weighted average profit margin. What does the weights parameter signify, and how does it influence the weightedprofitmargin?
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 Alheavy companies.
The weights parameter applies an inverse weighting of profit margins by 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 adoption rates.
weights gives equal importance to all profit margins, resulting in a simple arithmetic average, no different than if npmean were used.
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