Weighted averages aren’t intuitive, but they come up in business all the time. Fortunately, Excel has a quick function for calculation weighted averages.
If you’re a student, you may be more familiar with them than you think.
In our example, we want to find our final term grade based on the weighted average of four scores. Because some are assigned greater weight than others, we do not want to do a straight average.
Rather, we take a weighted average using SUMPRODUCT.
This Excel function cross-multiplies all cells in your selected arrays and adds the result.
So in our example, SUMPRODUC is adding 25% * 92, 25% * 85, and so forth.