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The Corporate Finance Institute ExcelStatisticalAVERAGEGet the average of a group of numbersnumber1 number2…How to calculate AVERAGE in Excel?The AVERAGE function is categorized under Statistical functions. It will returnthe average value of given series of numbers in Excel. It is used to calculate thearithmetic mean of a given set of arguments in Excel. This guide will show youstep-by-step how to calculate the average in Excel.As a financial analyst, the function is useful in finding out the average (mean) ofa series of numbers. For example, we can find out the average sales for the last12 months for a business.Formula=AVERAGE(number1, [number2], …)The function uses the following arguments:1. Number1 (required argument) – It is the first number or a cell reference ora range for which we want the average.2. Number2 (optional argument) – They are the additional numbers, cellreferences or a range for which we want the average. A maximum of 255numbers is allowed.How to use AVERAGE Function in Excel?To understand the uses of the AVERAGE function, let us consider a fewexamples:corporatefinanceinstitute.com166
The Corporate Finance Institute ExcelExample 1 – Average in ExcelSuppose we are given the following data:We wish to find out the top 3 scores in above data set. The formula to use willbe:corporatefinanceinstitute.com167
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