How to calculate average
We must define how to calculate an average before we can explain how to calculate an average percentage. The sum of a set of numbers divided by the total number of values in the set yields the set’s average. By adding the numbers (12 + 15 + 24 + 78 + 3 + 313 + 10 = 455) and dividing by the total number of values in the set (7), you can calculate the average of 12, 15, 24, 78, 3, 313 and 10, for instance, which is 65.
Understanding percentages
Simply put, percentages are ratios or proportions expressed as a number out of 100. For instance, if a box of 100 chocolates contains 35 chocolates filled with vanilla creme, this indicates that 35% of the box’s chocolates have this flavor. In many facets of daily life, including in academic and professional contexts, percentages are used. Additionally, there are numerous situations where calculating the average of percentages can be useful. For instance, a shareholder might be interested in tracking the evolution of two different stocks over time. The investor would need to know how to compute the average of the two stock percentages in order to comprehend this relationship.
How to calculate average percentage
Different steps are needed to calculate the average of two or more percentages compared to two or more regular numbers. When calculating the average percentage, there are many factors to consider, including the fact that you frequently must first determine the actual numbers that a percentage represents.
In most situations, use the steps below to calculate the average percentage:
1. Convert the percentages you wish to average into decimals
Converting percentages to decimals is the first step in computing the average of percentages. Let’s say, for instance, that you want to find the average of 30% of 150 and 25% of 200. By dividing these two percentages by 100, you can convert them into decimals. This means that 30% is 0. 3 as a decimal and 25% is . 25 as a decimal.
2. Determine the number that each decimal represents
Finding the number that each decimal represents is required after you have converted the percentages into decimals. To do this, multiply the decimal by the overall sample number. So, using the prior example, you would multiply 0. 3 by 150 to get 45 and multiply . 25 by 200 to get 50.
3. Add the numbers together
The following step is to combine the two figures discovered in the previous step. So, 45 plus 50 equals 95.
4. Add the sample sizes together
Additionally, you must total the sample sizes for each percentage. So, 150 plus 200 equals 350.
5. Calculate the percentage average
In this example, you must first divide the sum of the two percentage numbers by the sum of the two sample sizes in order to determine the average percentage of the two percentages. So, 95 divided by 350 equals 0. 27. The average percentage is then obtained by multiplying this decimal by one hundred. So, 0. 27 multiplied by 100 equals 27 or 27%. The average percentage of 30% of 150 and 25% of 200 is therefore 27%.
Average percentage formula
The formula that can be used to determine the majority of percentage averages is as follows:
The average percentage is calculated as [(percentage 1 + percentage 2)/(sample size 1 + sample size 2)] x 100.
The decimal value of the specified percentage from sample size 1 is represented by percentage 1 in this formula. You must first convert the percentage to a decimal before multiplying it by the sample size to get the value of percentage 1. To calculate the decimal equivalent of percentage 2 in this formula, repeat this step. Following the determination of the decimal values of each percentage for each specific sample size, add these decimal values together and divide the result by the sum of the two sample sizes. You must then multiply this number by 100 to determine the typical percentage.
Example of calculating average percentages
An illustration of how to determine the average of percentages in a practical situation is as follows:
The XYZ Company is trying to figure out what percentage of products in two different product categories sold on average during a given year. The business produced 500 products in the first product category, and sold 75% of them. The business created 400 products in the second category, selling 60% of them.
The steps taken to calculate the typical percentage of goods sold from both categories are as follows:
By applying this formula, XYZ Company has sold an average of 68% of the items from the two studied product categories.
Average percentages in Excel with a calculated field by Chris Menard
FAQ
How do you average 4 percentages?
- Determine the sample sizes corresponding to each percentage.
- For each percentage, multiply it by its sample size.
- Add the four numbers obtained in step 2.
- Add the four sample sizes.
- Subtract the result from step 3 from the result from step 4.
What is the average between 80% and 100%?
90 is the average of 100 and 80, so what is 80 and 100?
How do you calculate average percentage change?
First, determine how much the two numbers you are comparing have changed (increased). Next, multiply the result by 100 and then divide the increase by the starting amount. % increase = Increase ÷ Original Number × 100.
