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how to calculate a weighted average rate in excel. This is because Excel doesnt provide a function in the Pivot Table that automatically calculates the weighted average. Calculating Weighted Average in Excel The concept of an average comes from mathematics average can be defined as the result obtained by adding several quantities together and then dividing this total by the number of quantities.
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First of all add a helper column of Amount in the source data. First the AVERAGE function below calculates the normal average of three scores. Below you can find the corresponding weights of the scores.
Follow these steps to calculate weighted average.
Using the money-weighted rate of return excel calculator is straightforward. To find your weighted average simply multiply each number by its weight factor and then sum the resulting numbers up. Its clear that the computation of a simple average and a weighted average produces different results. First the AVERAGE function below calculates the normal average of three scores.
