![]() ![]() This assigned weight could be a percentage or a number (e.g. To calculate the weighted average of a dataset, you’ll need to multiply each value with its assigned weight. How to calculate the weighted average of a dataset? If you said yes to the second question instead, then what you’re calculating is the weighted average. If you said yes to the first question, then what you’re calculating is the simple average. Or do we take into account the units sold for each product? Now, if we want to get the average sales, do we simply divide the total sales by the number of products (which is 3)? Here’s what the sales data for the most recent month looks like: If no weight is assigned to each value, then it’s assumed that all of them carry the same weight (which will result in the weighted average being equal to the simple average).įor example, let’s say that a store sells three types of products: product A, product B, and product C. Now, the weight of a value will depend on what’s assigned to it. In other words, you need to take into account the importance of each value. Whenever you calculate a weighted average, you have to mind the weight that each value in the dataset carries. That’s not the case with the weighted average though. When calculating a simple average, you assume that each value in the dataset carries the same weight. Now if someone asks for the average value of this dataset, you’d probably answer 6. When someone talks about averages, they usually mean the simple average where you just calculate the average of a dataset without minding the weight of each value in it.įor example, let’s say a data set has the values: 2, 4, 6, 8, 10. I’ll be showing you what Excel functions you can use to perform such a task.īy the end of the article, you should be able to calculate any dataset’s weighted average whenever you have to.īut before we go discussing how you can calculate the weighted average in Excel, let’s familiarize ourselves first with what it is. In this article, I’ll be showing you how to calculate a dataset’s weighted average in Excel. It may not be as simple as using the AVERAGE function, but it’s really not that complicated either. Thankfully, you can still calculate the weighted average of a dataset in Excel. You need to calculate the weighted average instead. In such a case, just calculating the simple average won’t do. Sometimes, one value in a dataset may carry more weight than the other.įor example, as an accounting student, your marks in certain subjects carry more weight compared to others (minor subjects). ![]() ![]() That said, not everything is simple in real life and that includes averages. This means that not one value is more important than the other. You can also calculate averages in Excel via the AVERAGE function.Īnd by average, I mean the simple average where it is assumed that each value in the dataset carries the same weight. There are a lot of mathematical equations one can perform in Excel.įor example, you can perform basic mathematical operations (addition, subtraction, multiplication, division) in Excel via formulas. ![]()
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