# AVERAGE Function in Excel

Introduce

📌 Definition: The AVERAGE function in Microsoft Excel calculates the arithmetic mean of a range of values.

📌 Purpose: The AVERAGE function determines the average value of a set of numbers.

📌 Syntax & Arguments:

syntax
```AVERAGE(number1, [number2], [...]) ```

📌 Return Value: The AVERAGE function returns the arithmetic mean of the provided values.

📌 Remarks: The AVERAGE function ignores empty cells, text, and logical values in the range.

Examples

Example 1: Average Monthly Sales Consider a business with monthly sales data. Calculate the average monthly sales.

AB
1MonthSales
2Jan\$500
3Feb\$800
4Mar\$1200
• Formula (B5): `=AVERAGE(B2:B4)`
• Result: The average monthly sales will be calculated as \$833.33.

Example 2: Average Quantity Sold Consider the quantity of a product sold on different days. Find the average quantity sold.

AB
1DayQty
2110
3215
4312
• Formula (B5): `=AVERAGE(B2:B4)`
• Result: The average quantity sold will be calculated as 12.33.

Example 3: Average Response Time Calculate the average response time of a customer support team for different support tickets.

AB
1Ticket#Time
2T0015:23
3T0028:45
4T0037:12
• Formula (B5): `=AVERAGE(TIMEVALUE(B2:B4))`
• Result: The average response time will be calculated as 7:06.

Example 4: Average Test Scores Calculate the average test scores for students in different sections.

ABC
1StudentSectionScore
2JohnSection185
3JohnSection290
4JohnSection380
5MariaSection192
6MariaSection288
7MariaSection385
• Formula (C8): `=AVERAGE(IF(\$B\$2:\$B\$7="Section1",\$C\$2:\$C\$7))`
• Result: We use an array formula with the IF function to calculate the average score for Section 1 as 88.5.

Example 5: Average Revenue Growth Calculate the average revenue growth rate over five years.

AB
1YearRevenue
22017\$100,000
32018\$120,000
42019\$150,000
52020\$180,000
62021\$200,000
• Formula (B7): `=(B6-B2)/B2/(COUNT(B2:B6)-1)`
• Result: The average revenue growth rate will be calculated as 20%.

Example 6: Average Project Completion Time Calculate the average time to complete different projects.

AB
1ProjectDuration
2Project15 days
3Project27 days
4Project34 days
5Project46 days
• Formula (B6): `=AVERAGE(VALUE(SUBSTITUTE(B2:B5," days","")))`
• Result: The average project completion time will be calculated as 5.5 days.

Example 7: Calculate the average production cost per unit for different products.

ABC
1ProductQtyCost
2Product1100\$200
3Product250\$150
4Product375\$180
5Product4200\$300
• Formula (C6): `=AVERAGE(\$C\$2:\$C\$5/\$B\$2:\$B\$5)`
• Result: The average production cost per unit will be \$2.18.

💡 Tips and Tricks:

• Ensure that the range of values provided to the AVERAGE function includes only numeric data.
• The AVERAGE function ignores empty cells, text, and logical values in the range.
• Combine the AVERAGE function.