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weighted averages

  1. #1
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    weighted averages

    I have 30 zones that have a % contribution and I want to calculate a total % contribution by weighting each of the 30 zones for example:

    % contribution
    Zone 1 30%
    Zone 2 40%
    Zone 3 50%


    Total Sales
    Zone 1 1000
    Zone 2 1200
    Zone 3 2500


    Using total sales I want to weight each zones % contribution vs adding 30% + 40% +50% /3 or 40%.

    Any thoughts here?

  2. #2
    Forum Expert daddylonglegs's Avatar
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    Re: weighted averages

    The standard method for a weighted average would be

    =SUMPRODUCT(Sales,Percentages)/SUM(Percentages)

    which, for your example, would give approx 1692 - is that what you want?
    Audere est facere

  3. #3
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    Re: weighted averages

    I am looking for the weighted average percent vs sales, would it just be the reverse of your formula?

  4. #4
    Forum Expert daddylonglegs's Avatar
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    Re: weighted averages

    Yes, you'd just replace SUM(Percentages) with SUM(Sales), that would give you approx 43%

  5. #5
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    Re: weighted averages

    Perfect, thank you

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