How to Use the AVERAGE() Function in Excel

Mastering Averages: A Guide to Excel's AVERAGE() Function

Microsoft Excel's powerful computation capabilities make it the go-to tool for complex calculations and data analysis. Among Excel's diverse functionality, the AVERAGE() function is a staple—simplifying the process of calculating the average of a range of numbers. This guide walks you through the usage of the AVERAGE() function, complemented with helpful tips and tricks.

What is the AVERAGE() Function?

Excel's AVERAGE() function computes the arithmetic mean of a set of numbers. It sums up the numbers in a specified range and then divides this total by the number of items in that range. The result is the mean value of your data set.

Decoding the Syntax of the AVERAGE() Function

The AVERAGE() function is straightforward in its syntax:

=AVERAGE(number1, [number2], ...)
  • number1: This is the first number or range of numbers you want to include in your average calculation.

  • number2 (optional): These are any additional numbers or ranges you wish to include in the calculation.

Notably, the AVERAGE() function can include up to 255 individual numbers or ranges. Learn more about the function's syntax and uses here.

Step-by-Step Guide to Using the AVERAGE() Function

Here's how you can leverage the AVERAGE() function:

Step 1: Launch a new or existing Excel workbook and enter your data into a row or column. For instance, if you're working with sales figures, you could input these into cells A2 to A10.

Step 2: Choose the cell where you want to display the average. This cell will contain your AVERAGE() formula.

Step 3: In the formula bar, type the following:

=AVERAGE(A2:A10)

In this example, the AVERAGE() function calculates the average of numbers in cells A2 to A10.

Step 4: Press the Enter key. The result of the AVERAGE() function will then populate the selected cell.

Unlock the Power of the AVERAGE() Function with these Tips

  1. Incorporating Non-Adjacent Cells: The AVERAGE() function can calculate averages across non-adjacent cells. Simply separate the ranges with commas. For instance, to calculate the average of cells A2 to A10 and C2 to C10, your formula would be:

    =AVERAGE(A2:A10, C2:C10)

  2. Excluding Empty Cells: If your data contains empty cells, the AVERAGE() function considers these in its calculations. To exclude empty cells, use the AVERAGEA() function. More about AVERAGEA() can be found here.

  3. Disregarding Errors: Similarly, the AVERAGE() function includes error values (like #DIV/0!, #VALUE!, etc.) in its calculations. To ignore these, the AVERAGEIF() or AVERAGEIFS() functions come in handy. Learn more about these functions here and here.

  4. Rounding the Result: You can customize the number of decimal places shown in the cell with the AVERAGE() formula using Excel's formatting options. Learn how to do this here.

Concluding Remarks

The AVERAGE() function is an essential Excel tool, facilitating swift calculations of averages within your dataset. Whether your data pertains to finance, academics, or any other field, the AVERAGE() function provides a dependable way to derive mean values. With a grasp of its syntax and the handy tips provided, you can unlock the full potential of the AVERAGE() function and make your Excel data analysis even more effective.

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