To calculate a weighted average in Excel use SUMPRODUCT and SUM. Weighted Average W1 X1 W2 X2 Wn Xn. In the simple moving average method all the weights are equal to 1m.
Weighted average is a type of an average that takes into account the relative importance of each value under consideration and is calculated by multiplying the respective weights in percentage terms with its corresponding value Weighted Average Formula W1X1 W2X2 WnXn Here w respective weight in percentage x value.
Weighted Average W1 X1 W2 X2 Wn Xn. This type of forecasting is called weighted moving average. By using the Weighted Average Formula we get-. Enter an equals sign in the function bar to the right of the function symbol.