I have been asked recently by my manager to provide some analysis to the average price increase/decrease for our products. He mentioned that I need to use weighted average.
I am comparing the percentage of a price increase/decrease for 5 products during Jan 2007 & Jan 2008. My aim is to find the weighted average for the % of the price increase/decrease.
I have been told that weighted average is calculated using a different method and I am not sure how to do that.
I hope you can explain to me how weighted average is cacluated. Thank you
I have simply used the following method : Sum(13%,12.5%,-18.18%,0%,-3.85%)/5 = 0.69% (Thi is the % increase/decrease of the price when comparing 2007 with 2008 prices)
Please refer to the attached file for the example. Also note that my real life file consist of about 1000 products.