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One practical example of different weights is when businesses calculate the weighted average cost of capital. Hence, no matter what, the weights would always add up to 100%. In the above formula, the SUMPRODUCT result is divided by the sum of all the weights. Here is the formula that will get this sorted: =SUMPRODUCT(B2:B8,C2:C8)/SUM(C2:C8) The reason for this is that the weights don’t add up to 100%. In the above result, I have doubled all the weights, and it returns the weighted average value as 153.2. Now we know a student can’t get more than 100 out of 100, no matter how brilliant he/she is. If I use the same SUMPRODUCT formula, it will give me the wrong result. In the above case, the weights add up to 200%.
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Let’s have a look at the same example with different weights. But in real life scenarios, it may not always be the case. In the above case, the weights were assigned in such a way that the total added up to 100%. Here is an illustration to make it clear.Įxample 2 – When Weights Don’t Add Up to 100% Then it multiplies the second element of the first array with the second element of the second array. Here is how this formula works : Excel SUMPRODUCT function multiplies the first element of the first array with the first element of the second array.
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Here is the formula that will give you the weighted average in Excel: =SUMPRODUCT(B2:B8,C2:C8) In such a case, you can use the SUMPRODUCT function to get the weighted average of the score. A simple average can not be calculated here as the importance of different evaluations vary.įor example, a quiz, with a weight of 10% carries twice the weight as compared with an assignment, but one-fourth the weight as compared with the Exam. In the above data, a student gets marks in different evaluations, but in the end, needs to be given a final score or grade. Suppose you have a dataset with marks scored by a student in different exams along with the weights in percentages (as shown below): Below are three different situations where you can use the SUMPRODUCT function to calculate weighted average in Excelīelow are three different situations where you can use the SUMPRODUCT function to calculate weighted average in Excel Example 1 – When the Weights Add Up to 100% There could be various scenarios where you need to calculate the weighted average. Calculating Weighted Average in Excel – SUMPRODUCT Function
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In this tutorial, you’ll learn how to calculate the weighted average in Excel:
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Calculating Weighted Average in Excel – SUM Function.Example 3 – When the Weights Need to be Calculated.Example 2 – When Weights Don’t Add Up to 100%.Example 1 – When the Weights Add Up to 100%.Calculating Weighted Average in Excel – SUMPRODUCT Function.WorkApps Package your entire business program or project into a WorkApp in minutes.Digital asset management Manage and distribute assets, and see how they perform.Resource management Find the best project team and forecast resourcing needs.Intelligent workflows Automate business processes across systems.Governance & administration Configure and manage global controls and settings.Streamlined business apps Build easy-to-navigate business apps in minutes.Integrations Work smarter and more efficiently by sharing information across platforms.Secure request management Streamline requests, process ticketing, and more.Process management at scale Deliver consistent projects and processes at scale.Content management Organize, manage, and review content production.Workflow automation Quickly automate repetitive tasks and processes.Team collaboration Connect everyone on one collaborative platform.Smartsheet platform Learn how the Smartsheet platform for dynamic work offers a robust set of capabilities to empower everyone to manage projects, automate workflows, and rapidly build solutions at scale.