Weighted Average in Stata's collapse command
You're misreading that documentation.
The point is whether normalization makes a difference to the results for different kinds of weights, not whether weights are allowed at all. In fact, weights are fairly generally allowed, as the help and manual entry explain.
Thus, the frequency-weighted sum or count differs from the analytically-weighted sum or count, and so forth.
Weights are allowed with collapse (mean)
. Try it, e.g.
collapse (mean) price [w=units] , by(week product)
Olga
Currently, a PhD student in Business (Operations Research), USA. Hold MA in Economics and BS in Business Economics from a US university.
Updated on June 20, 2022Comments
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Olga almost 2 years
I couldn't find a Stata command on the following issue, so I solved it manually:
According to the official manual, Stata doesn't do weights with averages in the collapse command (p. 6 of the Collapse chapter):
It means that I am not able to get weighted average prices paid in my sales data set at a week/product level where the weight is the units sold. The data set is a collection of single transactions with # of purchases and prices per unit paid at week/store/product level:
clear set more off week,store,product,price,units 1,1,cheer,1,10 1,1,tide,2,6 1,2,cheer,2,7 1,2,tide,3,5 2,1,cheer,1,15 2,1,tide,1,20 2,1,mrclean,2,8 2,2,cheer,2,8 2,2,tide,4,5 2,2,mrclean,3,4
Clearly, taking simple averages when collapsing ignores number of units purchased, resulting in a wrong average price estimate.
So what I did is I manually calculated a new variable
price x units
in the original data set. Then, I collapsed the dataset by summing up theprice x units
andunits
variables:collapse (sum) pricexunits units, by(week product)
And finally, I created a new variable where I divided
pricexunits
byunits
. Do you think I could have done something differently?