Hello JK,
To calculate the
weighted average growth rate, you can use the formula:
Code:
=SUMPRODUCT(A1:A6,B1:B6)/SUM(A1:A6)
This formula multiplies each number in
column A by its corresponding growth rate in
column B, adds up the results, and then divides by the total sum of
column A.
However, since you have a
negative growth rate in cell
B5, you may want to consider using the
ABS() function to get the absolute value of the growth rate. This is because the negative growth rate will decrease the overall weighted average growth rate.
To calculate the weighted average growth rate with the absolute value of the growth rates, you can use the formula:
Code:
=SUMPRODUCT(A1:A6,ABS(B1:B6))/SUM(A1:A6)
This formula multiplies each number in
column A by the absolute value of its corresponding growth rate in
column B, adds up the results, and then divides by the total sum of
column A.
So, to answer your question, if you want to include the negative growth rate in your calculation, you do not need to use the
ABS() function. However, if you want to calculate the weighted average growth rate without the negative growth rate affecting the result, you should use the
ABS() function.
- Use the formula
Code:
=SUMPRODUCT(A1:A6,B1:B6)/SUM(A1:A6)
to calculate the weighted average growth rate. - Consider using the ABS() function if you have negative growth rates.
- Use the formula
Code:
=SUMPRODUCT(A1:A6,ABS(B1:B6))/SUM(A1:A6)
to calculate the weighted average growth rate with the absolute value of the growth rates.