In this article, we will learn about how to calculate the Weighted Average of the set of values.
A weighted average is a basically average where each observation in the data set is multiplied by a predetermined weight before calculation.
Weighted Average = ?(value * weight(value)) /? (weight)
Average = Sum of values in a range / number of values in a range
When we calculate the average of a range, every value in the range have equal weightage. But when we have values of variance weights, then we need to use weighted average concept.
Let’s understand how to execute Excel Weighted average formula using SUMPRODUCT and SUM function.
Here we have two arrays
Use the formula in the cell to find the weighted average
SUMPRODUCT function calculates the sum of the products of corresponding values (Score * Weightage(score)) and SUM function finds the sum of Weightage.
Press Enter to get the weighted sum of the data.
As you can see the result in B8 cell.
Hope you understood how to calculate the Weighted average of a set of values. Explore more articles on Mathematical formulation in Excel here. Mention your queries in the comment box below. We will help you with it.
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