[Math] Calculating average over a year

average

I'm trying to calculate the average count of employees for a group of companies. I need to exclude months where a a company had no employees. Please verify that my approach is correct.

January February    March   April   May June    July    August  September   October November    December
10      10          10      10      10    10    10      10      10          10      10         10
30      30          30      30      30    30    30      30      30          30      30         30
                                                5       5       5           5       5          5
                                                                                               120

80      80          80      80      80    80    135     135     135         135     135        660

Total Employees=    1815                                        
Total Months=   31                                      


Avg Employees=  58.55                                       

image of formulas

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Best Answer

Are you wanting straight average or weighted average?

If straight average, I think that your formula on row 8 for each column should be =sum(c2:c5)/c6. That would give you the monthly average. Excel ignores blank cells in its built in functions. So you could just use =average(c2:c5) and it would give you 20 for the average number of employees in January. Or you can do =average(c2:n5) and get the average of all months.

If you are trying to do it as a weighted average, then there are some issues. If you think about the data as occurrences, then a weighted average makes a little more sense. You have 12 months that had 10 employees. 12 months that had 30 employees, 6 months that had 5 employees, and one that had 120 employees. So there were 12+12+6+1 = 31 and there were 120+360+30+120 = 630 employees who worked during those 31 months. So the average is 630/31 = 20.32 employees.