In the next tutorial, we are going to have a close look at calculating moving average.
Technical formula for average of percentages download#
You can download the sample spreadsheet below and try the formulas on your data. Well, that's all about calculating weighted average in Excel. For example, you can make up a priority / importance scale and assign a certain number of points to each item, as demonstrated in the following screenshot: Nor do they need to be expressed as percentages. When using either the SUM or SUMPRODUCT function to find weight average in Excel, weights do not necessarily have to add up to 100%.
To make sure that the SUMPRODUCT function yields a correct result, compare it to the SUM formula from the previous example and you will see that the numbers are identical. When all of the multiplications are done, the function adds up the products and returns that sum. So, what the SUMPRODUCT function does is multiply the 1 st value in array1 by the 1 st value in array2 (91*0.1 in this example), then multiply the 2 nd value in array1 by the 2 nd value in array2 (65*0.15 in this example), and so on. To see the actual values behind an array, select it in the formula bar and press the F9 key. Supposing that the values to average are in cells B2:B6 and weights in cells C2:C6, our Sumproduct Weighted Average formula takes the following shape: =SUMPRODUCT( values_range, weights_range) / SUM( weights_range)
So, instead of multiplying each value by its weight individually, you supply two arrays in the SUMPRODUCT formula (in this context, an array is a continuous range of cells), and then divide the result by the sum of weights: In this case, you'd better utilize the SUMPRODUCT function as demonstrated in the next example.Įxcel's SUMPRODUCT function fits perfectly for this task since it is designed to sum products, which is exactly what we need. Notice the difference between the normal average returned by the AVERAGE function (C8) and weighted average (C9).Īlthough the SUM formula is very straightforward and easy to understand, it is not a viable option if you have a large number of elements to average. In essence, it performs the same calculation as described above, except that you supply cell references instead of numbers.Īs you can see in the screenshot, the formula returns exactly the same result as the calculation we did a moment ago. If you have basic knowledge of the Excel SUM function, the below formula will hardly require any explanation: Calculating weighted average using SUM function In Microsoft Excel, weighted average is calculated using the same approach but with far less effort because Excel functions will do most of the work for you. In this example, in order to calculate the weighted average (overall grade), you multiply each grade by the corresponding percentage (converted to a decimal), add up the 5 products together, and divide that number by the sum of 5 weights: In mathematics and statistics, you calculate weighted average by multiplying each value in the set by its weight, then you add up the products and divide the products' sum by the sum of all weights. However, we want the average formula to consider the weight of each activity listed in column C. A usual average is easily calculated with the Excel AVERAGE function. Students' grades are often calculated using a weighted average, as shown in the following screenshot. In other words, each value to be averaged is assigned a certain weight. Weighted average is a kind of arithmetic mean in which some elements of the data set carry more importance than others.
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