An improved radiometric calibration algorithm by extending the Mitsunaga and Nayar least-square minimization based algorithm with two major ideas is presented. First, a noise & outlier removal procedure based on the analysis of brightness transfer function is included for improving the algorithm's capability on handling noise and outlier in least-square estimation. Second, an alternative minimization formulation based on weighted least square is proposed to improve the weakness of least square minimization when dealing with biased distribution observations. The performance of the proposed algorithm with regards to two baseline algorithms is demonstrated, i.e. the classical least square based algorithm proposed by Mitsunaga and Nayar and the state-of-the-art rank minimization based algorithm proposed by Lee et al. From the results, the proposed algorithm outperforms both baseline algorithms on both the synthetic dataset and the dataset of real-world images.