Dear forum members,
I'd like to get an entropy measure of diversification for companies im studying. All companies have different sales in different business segments and I'd like to get a value corresponding to this formula:
Entropy measure of diversification.JPG
In column A I have company identifiers (unique tickers), in Column B I have years (2002 until 2004), and in column C i have business segments with their respective sales figures.
I need to divide all segment sales by the total sales to use in my formula. The total sales is easy to get (=SUMIF(year and ticker)). The second part, dividing individual segments by the total IF its a business segment of ticker AAA and year 2002 is what I dont understand. (not every company has the same amount of segments, some have 3 some have 4 etc.
Thank you for your help!
DOW 2002 Segment1 sales DOW 2002 Segment2 sales DOW 2002 Segment3 sales WMT 2002 Segment1 sales WMT 2002 Segment2 sales AMD 2002 Segment1 sales
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