Purpose
- Provides more accurate calculations compared to the standard average when data points have different levels of importance.
- Automates weighted average calculation directly in SAC models without manual formulas.
- Widely applicable in finance, sales, inventory, and KPI analysis.
- Supports up to 10 dimensions, making it flexible for multi-dimensional analysis.
Formula
WAVG([Measure] or [Account Member], [Assigned Weight], [Dimension1], [Dimension2] … [Dimension10])
- [Measure] or [Account Member]: The value to be averaged with weights.
- [Assigned Weight]: The weight to apply to each value.
- [Dimension 1…10]: Optional dimensions for analysis.
Example: Weighted Average Loan Interest Rate
A bank has multiple loan types, each with different interest rates and loan amounts. The bank wants to find the actual average interest rate weighted by loan amount.
| Loan Type | Interest Rate (%) | Loan Amount (Weight) | Rate × Amount |
|---|---|---|---|
|
Mortgage |
6.0 |
500,000 |
30,000 |
|
Personal Loan |
9.0 |
200,000 |
18,000 |
|
Business Loan |
7.5 |
300,000 |
22,500 |
|
Total |
— |
1,000,000 |
70,500 |
Simple Average:
Weighted Average (WAVG):
Illustration in SAC:
