Today we will learn how to calculate weighted average in Excel with percentages.
What is weighted average ?
Weighted average or weighted mean is defined as [from wikipedia],
The weighted mean is similar to an arithmetic mean …, where instead of each of the data points contributing equally to the final average, some data points contribute more than others.
…If all the weights are equal, then the weighted mean is the same as the arithmetic mean.
Why should you calculate weighted average?
Well, it is because, in some situations normal averages give in-correct picture. For eg. assume you are the CEO of ACME Widgets co.. Now you are looking annual salary report and being the numbers-gal you are, you wanted to find-out the average salary of your employees. You asked each department head to give you the average salary of that department to you. Here are the numbers,
Now, the average salary seems to be $ 330,000 [total all of all salaries by 5, (55000+65000+75000+120000+1200000)/5 ].
You are a happy boss to find that your employees are making $330k per year.
Except, you are wrong. You have not considered the number of employees in each department before calculating the average. So, the correct average would be $76k as shown above.
How to Calculate Weighted Average in Excel with Percentages
There is no built-in formula in Excel to calculate weighted averages. However, there is an easy fix to that. You can use SUMPRODUCT formula. By definition, SUMPRODUCT formula takes 2 or more lists of numbers and returns the sum of product of corresponding values. [related: Excel SUMPRODUCT Formula – what is it and how to use it?]
So, if you have values in B4:B8 and the corresponding weights in C4:C8, you can use SUMPRODUCT like this to get weighted average.
=SUMPRODUCT(B4:B8, C4:C8)
Caution: However, the above method works only if C4:C8 contains weights in percentages(%) totaling to 100%.
WAvg Formula Pattern (use this with your data)
=SUMPRODUCT(<your values>, <your weights>)What if my percentage weights don’t add up to 100%?
May be your weights are more than 100 percent. Or may be they are less than 100 percent. In both cases, you can use the below formula variation.
=SUMPRODUCT(B15:B19, C15:C19) / SUM(C15:C19)
The idea is to divide the total of weights with the SUMPRODUCT result so that we can adjust Weighted Average as the weights don’t add up to 100 percent.
WAvg Formula Pattern when weights don’t add up to 100 percent
=SUMPRODUCT(<your values>, <your weights>) / SUM(<your weights>)Weighted Average when you have counts instead of weights:
If you have count of observations instead of weights, you can still use the SUMPRODUCT formula to calculate weighted average in Excel.
Here is the formula for above example:
=SUMPRODUCT(B26:B30, C26:C30) / SUM(C26:C30)
Notice that this formula is same as the formula for weighted average with weights not adding up to 100 percent.
WAvg Formula Pattern when you have counts instead of weights
=SUMPRODUCT(<your values>, <your counts>) / SUM(<your counts>)Weighted Average with Extra Conditions
Let’s say you have city wise observations and weights. And you want to calculate the weighted average, only for Boston values. In this case, you can use a variation of the formula like below:
=SUMPRODUCT((C5:C16)*(B5:B16=F5),D5:D16)/SUMIFS(D5:D16,B5:B16,F5)
How does this formula work?
- SUMPRODUCT calculates the total value for BOSTON by summing up C5:C16 (value column) where B5:B16 is Boston (highlighted portion of the formula) and multiplies that with the counts.
- So in the above example, this will just give us the total of Boston – ie 218,600
- We then divide this with the total count of Boston (using the SUMIFS formula) – ie 400
- This results in the weighted average for Boston values alone – ie 546.50
For more information on how the conditions work inside SUMPRODUCT formula, please read this article.
Download Weighted Average Calculation Example Workbook:
In this workbook, you can find 4 examples on how to to calculate weighted average in excel. Go ahead and download it to understand the formulas better.
Weighted Average in Excel – Formula Explained
Here is a video with Weighted Average formula explained. Please watch it below to learn more. Alternatively, head to my YouTube page to see the weighted averages in Excel video.
In Conclusion
Weighted averages are a great way to explain data and every data analyst should know how and when to use them with their data. Apart from Weighted Average, I suggest learning how to use moving average and average of top n values. These will help you explain the data and trends to your audience better.
Do you use Weighted Mean / Weighted Average?
What do you use it for? What kind of challenges you face? Do you apply any tweaks to weighted average calculations? Please share your ideas / tips using comments.
26 Responses to “Get busy this weekend, with OR XOR AND [Excel Homework]”
first solution for AND
The two numbers are in A1 and B1
= SUBSTITUTE (SUBSTITUTE (A1+B1*9*9, 9, 1), 8, 0)
regards
Stef@n
next solution for OR
=1*SUBSTITUTE (A1+A2;2;1)
regards
Stef@n
last solution for XOR
=1*SUBSTITUTE (A1+A2;2;0)
regards
Stef@n
Or you could make use of the VBA logical operators!
Define the following as custom functions
Public Function BITXOR(x As Long, y As Long)
BITXOR = x Xor y
End Function
Public Function BITAND(x As Long, y As Long)
BITAND = x And y
End Function
Public Function BITOR(x As Long, y As Long)
BITOR = x Or y
End Function
and then use them such:
A B =BITOR(A,B) =BITAND(A,B) =BITXOR(A,B)
0101 0100 0101 0100 0001
an another solution for AND
=1*SUBSTITUTE (SUBSTITUTE (A1+A2;1;0);2;1)
note:
the binary numbers are in A1 and A2 !
regards
Stef@n
I was obviously playing hooky at the beach during the bit-wise math lesson – you lost me at “Understanding bit-wise operations” 🙂
After looking at the above solutions, I find my solution silly, but still:
For the following formulae,
Row 1: headers,
Row 2: OR
Row 3: AND
Row 4: XOR
Column 1: Input 1
Column 2: Input 2
Column 3: Result
OR
{=SUM(IF(MID(A2,ROW(OFFSET($A$1,0,0,LEN(A2),1)),1)+MID(B2,ROW(OFFSET($A$1,0,0,LEN(B2),1)),1)>0,1,0)*10^(LEN(A2)-ROW(OFFSET($A$1,0,0,LEN(B2),1))))}
AND
{=SUM(IF(MID(A3,ROW(OFFSET($A$1,0,0,LEN(A3),1)),1)+MID(B3,ROW(OFFSET($A$1,0,0,LEN(B3),1)),1)=2,1,0)*10^(LEN(A3)-ROW(OFFSET($A$1,0,0,LEN(B3),1))))}
XOR
{=SUM(IF(MID(A4,ROW(OFFSET($A$1,0,0,LEN(A4),1)),1)+MID(B4,ROW(OFFSET($A$1,0,0,LEN(B4),1)),1)=1,1,0)*10^(LEN(A4)-ROW(OFFSET($A$1,0,0,LEN(B4),1))))}
@Anup
Please don't consider your solution silly
Firstly, You are the 3rd person to submit an answer
Secondly, The best formula/function is the one that you know and understand.
I think I have a very tedious solution, which people won't have the patience to do except in small numbers.
I used the same problem setup as "Anup Agarwal"
AND =IF(AND(MID(B2,1,1)="1",MID(C2,1,1)="1"),1,0)&IF(AND(MID(B2,2,1)="1",MID(C2,2,1)="1"),1,0)&IF(AND(MID(B2,3,1)="1",MID(C2,3,1)="1"),1,0)&IF(AND(MID(B2,4,1)="1",MID(C2,4,1)="1"),1,0)
OR =IF(OR(MID(B3,1,1)="1",MID(C3,1,1)="1"),1,0)&IF(OR(MID(B3,2,1)="1",MID(C3,2,1)="1"),1,0)&IF(OR(MID(B3,3,1)="1",MID(C3,3,1)="1"),1,0)&IF(OR(MID(B3,4,1)="1",MID(C3,4,1)="1"),1,0)
=IF(OR(AND(MID(B4,1,1)="1",MID(C4,1,1)="0"),AND(MID(B4,1,1)="0",MID(C4,1,1)="1")),1,0)&IF(OR(AND(MID(B4,2,1)="1",MID(C4,2,1)="0"),AND(MID(B4,2,1)="0",MID(C4,2,1)="1")),1,0)&IF(OR(AND(MID(B4,3,1)="1",MID(C4,3,1)="0"),AND(MID(B4,3,1)="0",MID(C4,3,1)="1")),1,0)&IF(OR(AND(MID(B4,4,1)="1",MID(C4,4,1)="0"),AND(MID(B4,4,1)="0",MID(C4,4,1)="1")),1,0)
Sorry my last post was totally messed up
AND
=IF(AND(MID(B2,1,1)="1",MID(C2,1,1)="1"),1,0)&IF(AND(MID(B2,2,1)="1",MID(C2,2,1)="1"),1,0)&IF(AND(MID(B2,3,1)="1",MID(C2,3,1)="1"),1,0)&IF(AND(MID(B2,4,1)="1",MID(C2,4,1)="1"),1,0)
OR
=IF(OR(MID(B3,1,1)="1",MID(C3,1,1)="1"),1,0)&IF(OR(MID(B3,2,1)="1",MID(C3,2,1)="1"),1,0)&IF(OR(MID(B3,3,1)="1",MID(C3,3,1)="1"),1,0)&IF(OR(MID(B3,4,1)="1",MID(C3,4,1)="1"),1,0)
XOR
=IF(OR(AND(MID(B4,1,1)="1",MID(C4,1,1)="0"),AND(MID(B4,1,1)="0",MID(C4,1,1)="1")),1,0)&IF(OR(AND(MID(B4,2,1)="1",MID(C4,2,1)="0"),AND(MID(B4,2,1)="0",MID(C4,2,1)="1")),1,0)&IF(OR(AND(MID(B4,3,1)="1",MID(C4,3,1)="0"),AND(MID(B4,3,1)="0",MID(C4,3,1)="1")),1,0)&IF(OR(AND(MID(B4,4,1)="1",MID(C4,4,1)="0"),AND(MID(B4,4,1)="0",MID(C4,4,1)="1")),1,0)
@stefan,
I just couldn't get your solutions to work.
01010101010 + 01010101110 = 02020210120
what am i doing wrong?
@anup
...I got yours to work!
@Stephen - I get the same, but Stef@an's second solution for AND does work (at least for the test cases I used)
@ Stephen / Rich
yes , you are right ! - only this works:
OR
=1*SUBSTITUTE (A1+A2;2;1)
XOR
=1*SUBSTITUTE (A1+A2;2;0)
AND
=1*SUBSTITUTE (SUBSTITUTE (A1+A2;1;0);2;1)
@Stef@n - You're answer is really smart, I never knew about the substitute function before. Great Work!
Thx Michael 🙂
yes - it is simply easy 😉
if you add 1 and 1 - excel calculate 2
and then you have to substitute the 2 - new = 0 respectively 1
Here is a good resource for people wanting to learn binary and hexadecimal.
http://justwebware.com/bitwise/bitwise.html
Three that weren't asked for:
NOT
=SUBSTITUTE(SUBSTITUTE(SUBSTITUTE(A1+A2,0,3),1,0),3,1)
EQV
=SUBSTITUTE(SUBSTITUTE(SUBSTITUTE(SUBSTITUTE(A1+A2,0,3),2,3),1,0),3,1)
IMP
=SUBSTITUTE(SUBSTITUTE(A1+SUBSTITUTE(SUBSTITUTE(SUBSTITUTE(A2,0,3),1,0),3,1),0,1),2,0)
(was using Daniel Ferry's bitwise file to verify against)
@ Kyle
Not only takes one parameter and inverts 0 -1 and 1-0
Took out the +A2
=SUBSTITUTE(SUBSTITUTE(SUBSTITUTE(A1,0,3),1,0),3,1)
Great solutions!
I'll add two:
NAND =1*SUBSTITUTE (A1+A2,2,0)
NOR=1*SUBSTITUTE(SUBSTITUTE (SUBSTITUTE(A1+A2,0,2),1,0),2,1)
This will work for binary numbers of any size (although the text format mask will have to have as many zeroes as there are digits in the longest addend)
Assume binary #s are in C35 & C36, then add and format as text in C37:
=TEXT(C36+C35,"000000000000")
-sum- = 101112211112
AND - SUBSTITUTE 0s for 1s in -sum-, then sub 1s for 2s
=SUBSTITUTE(SUBSTITUTE(C37,"1","0"),"2","1")
OR - sub 1s for 2s in -sum-
=SUBSTITUTE(C37,"2","1")
XOR - sub 0s for 2s in -sum-
=SUBSTITUTE(C37,"2","0")
Just wandered by:
AND:
=SUBSTITUTE(A1+A2,1,0)/2
Clever, Shane. I like that.
[…] post http://www.excelhero.com/blog/2010/01/5-and-3-is-1.html for examples using Sumproduct, and http://chandoo.org/wp/2011/07/29/bitwise-operations-in-excel/ for examples using Text […]
Hi Chandoo,
I am not (yet) really into bitwise calculation, but I am looking for a way to speed up my vba calculation with very big numbers. Would is ben convenient to use bitwise notation for this?
Best regards,
Ronald (the Netherlands)
p.s. love your country!
@Ronald
I'd suggest asking this in the Chandoo.org Forums
https://chandoo.org/forum/
Attach a sample file with an example of some data and describe what you want to achieve