Averaging Percentages

Averaging the monthly percentages is not the same as calculating the percentage from the totals. The monthly percentages are weighted by their Totals.

Consider, for example, that Month 1 is a percentage based on a total of only $5 and Month 2 was percentage based on a total of $100. If you average the monthly percentages, that average doesn't take into account that Month 2's total is twenty times larger than Month 1. Does that help?

AlphaFrog said:

Averaging the monthly percentages is not the same as calculating the percentage from the totals. The monthly percentages are weighted by their Totals.

Consider, for example, that Month 1 is a percentage based on a total of only $5 and Month 2 was percentage based on a total of $100. If you average the monthly percentages, that average doesn't take into account that Month 2's total is twenty times larger than Month 1. Does that help?

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Thanks

Looks like all I have to do is the average formula on %? I don't have to take anything else into account?

Thank you

Try

Michael M said:

Try


Excel 2007

	A
1	-88%
2	-17%
3	94%
4
5	-4%

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Sheet3​

Worksheet Formulas Cell Formula A5 =AVERAGE(A1:A3) <thead> </thead><tbody> </tbody>

<tbody>
</tbody>

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Perfect thanks - that is what I am doing.

As long as I do not have to take into consideration any YTD Earnings (Which it looks as though I don't) then all is good.

Appreciate your help. Have a good weeken

No, Debbie. That doesn't work. Did you see Alpha Frog's post? The calculation needs to be like in your first post : $68,748 / $ 2,577,608

Mike. It must be beer o'clock where you are: I think you need a break. Either that or I'm off track & I should have one..

Fazza said:

No, Debbie. That doesn't work. Did you see Alpha Frog's post? The calculation needs to be like in your first post : $68,748 / $ 2,577,608

Mike. It must be beer o'clock where you are: I think you need a break. Either that or I'm off track & I should have one..

Click to expand...

Ok I think, I need to remove myself from this forum. Please advise how to do it.

If my original thought of $68,748/2,577,608 was correct, then why am I being shown examples of averaging. I know you not trying to spoon feed. But I was asking if I was correct in m original thought.

Thanks to everyone for the time and patience. I appreciate your kindness & help. Be happy.

Hi Fazza
Yep...beer o clock it is ....darn, now I suppose I have to have one for you as well !!!, but I was agreeing with Alpha frog !
It depends on whether she wants weighted averages or averages of the provided % for each month

Hi, Debbie

There seems to be just a little mis-understanding. I hope it is accepted and you stay with Mr Excel for ongoing interaction.

The simple arithmetic average [that is the mathematical AVERAGE that the Excel status bar shows, or a worksheet formula gives] could be the correct approach, sometimes. Though only rarely. When that is appropriate, for the example for your data with three values, the average is the sum of the three values divided by 3. This is fine for simple things like the amount of money in an account : three values of 1, 2 & 9 give an average of 4. Or three values of -6, 2 & 3 give an average of -1/3. This is not the case for your data.

Just about always when dealing with percentages (by definition, parts of something & in this case not the same something each time) like you have this overall average calculation of percentage is done only on the totalled data at the final step - not by averaging the individual percentages. So, don't take averages of percentages. It seems in this case that is YTD Earnings for three months as a percentage of YTD something else for the same three months. So, ignore the individual monthly percentages but calculate the percentage on the totals for the three months.

Maybe if have some non-confidential data to share, it would be clearer to work with your values?

If you prefer to not reply, no problem. If you wish to terminate your Mr Excel membership I suggest you write a message to a moderator. I'll report the thread & bring it to the attention of the moderators & I guess someone will send you a message.

Hope that helps. Regards, Fazza