I'm aware of the concept of calculating a weighted average but the data I'm working with is confusing me. I couldn't find any similar examples when I did a search.
Here's an example. We have a number of leads generated for every day of the week. In this case the cost per lead generated is not fixed, nor is the revenue generated per lead. I've calculated the Profit by taking the revenue and subtracting the cost. Then I use that to calculate the average profit per lead for each day. The final column is the ratio between the cost and the revenue on each day (Cost / Revenue).
As you can see there are days were no profit is made and the Cost / Revenue ration is Div/0 (infinite).
My question is, how do I determine the average Profit Per Lead for the whole week, and the average Cost / Revenue Ratio for the whole week?
Day Leads Cost Revenue Profit Profit Per.L Cost/Revenue Ratio M 100 20 70 50 0.5 28.57% T 200 10 80 70 0.35 12.5% W 250 15 120 105 0.42 12.5% T 75 30 100 70 0.93 30% F 140 70 75 5 0.04 93.33% S 160 80 0 -80 -0.5 Div/0 S 100 25 90 65 0.65 27.78%
SUM the PPL and divide it by 7?
SUM the C/R Ratio and divide by 6. Though that would not take in to account that Saturday which was very poor. Should I substitute 100% in stead of 0 and divide by 7?
( SUM Profit ) / ( SUM number of Leads) = Average PPL for the week?
( SUM Revenue ) / ( SUM Revenue ) = Average Cost / Revenue ration for the week?