How to calculate Weighted Average for price increase/decrease
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%
Please refer to the attached file for the example. Also note that my real life file consist of about 1000 products.