Weighted Average with percentages

jungle125

New Member
Joined
Nov 5, 2022
Messages
18
Office Version
  1. 365
Platform
  1. Windows
Hi

I am having an issue calculating the weighted average % of this dataset.
I thought that a SUMPRODUCT / sum function will do the trick, but it´s not returning numbers that make any sense, so I´m assuming I´m not using it properly. Basically, if the column on the right has a higher number of data points that created the individual averages in the left column. I expect for examples rows 8 and 15 which contain the highest number of data points and also corresponding high % values to have a bigger influence on the overall % when distributed by weight (formula for weighted average should replace mean average in D3.

Thanks in advance for your help!

01 Master + Observations.xlsx
DE
2Weight average %Data set size that determined the average
336%39
4Column4Column5
523%1
60
727%1
847%12
90
1046%6
1124%3
120
130
1417%1
1559%14
160
1747%1
180
190
MASTER S&P
Cell Formulas
RangeFormula
D3D3=AVERAGE(AAPL[Column4])
E3E3=SUM(E5:E19)
 

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This will probably help a LOT!
Video: Weighted average - Microsoft Support
As best as I can tell, the formula you're looking for is:
Excel Formula:
=SUMPRODUCT(AAPL[Column4],AAPL[Column5])/SUM(AAPL[Column5])
The zeros in Column5 don't change the result ( 0.474924227 or 47.49% ).
In all honesty I had no idea when I first saw this. Always a good day when you learn something!
 
Upvote 0
Solution
Hi jdellasala,

you are right! The mistake I made was not separating the two "arrays" column 4 and 5. When I saw the word "array" in the formula, I thought I could automatically select both columns in one go.
Last time I used sumproduct was a very long time ago!
 
Upvote 0
Hi jdellasala,

you are right! The mistake I made was not separating the two "arrays" column 4 and 5. When I saw the word "array" in the formula, I thought I could automatically select both columns in one go.
Last time I used sumproduct was a very long time ago!
I wouldn't have known what it was without doing a search for it. I'm fine with SUMPRODUCT, but never had to do a weighted average. That short video did the trick though! Glad it helped you too.
 
Upvote 0

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