How to do weighted average

When using the weighted average method, you divide the cost of goods available for sale by the number of units available for sale, which yields the weighted–average cost per unit. In this calculation, the cost of goods available for sale is the sum of beginning inventory and net purchases.

We’ll use the SUMPRODUCT and SUM functions to determine the Weighted Average. The SUMPRODUCT function multiplies each Test’s score by its weight, and then, adds these resulting numbers. We then divide the outcome of SUMPRODUCT by the SUM of the weights. And this returns the Weighted Average of 80.

For example, if students in a dance class are graded on skill, attendance, and manners, the grade for skill may be given greater weight than the other factors. In any case, in a weighted average, each data point value is multiplied by the assigned weight which is then summed and divided by the number of data points.

A weighted average (weighted mean or scaled average) is used when we consider some data values to be more important than other values and so we want them to contribute more to the final “average“. This often occurs in the way some professors or teachers choose to assign grades in their courses.