There is a site on it, users put different companies rating.
There is K — number of votes, N is the average incoming in the interval [1, 5].
Need some measure of T(K, N), which is a function of the average company's valuation and number of votes.
For this indicator, companies will be sorted.
The indicator should take into account the fact that the smaller number of votes, the greater the likelihood that the assessment differs from the objective (we will for simplicity be regarded as an objective average score of all users of the earth :)).
Has come up with just such a formula:
N = K+(K-3)*(N-1)*k/Nmax, where Nmax is the maximum number of votes, k is a coefficient chosen from common sense, looking at real data.
Maybe I reinvent the wheel and there are some mathematically justified and vital proven formula for such things?