stop reporting shit. start interpreting it instead.
Dear Data Analyst,
Let me tell you something about totals.
They don’t tell you the full story.
Imagine you made $1,000 in sales this week.
Sounds good but what if it took 500 orders to get there - That’s $2 per order.
Now imagine someone else made $800 from 10 orders - That’s $80 per order.
Who’s actually performing better?
This is why you need AVERAGE.
Today, I will teach you the AVERAGE function.
It is:
The function that turns raw numbers into meaning
The function hiring managers use to set targets
And the function you’ll use to benchmark performance
What is the AVERAGE function?
AVERAGE calculates the mean of a group of numbers.
Instead of adding everything up and dividing by the count yourself.
You let Excel do the work.
Here’s how it works:
When you type this into any cell: =AVERAGE(A1:A10)
This tells Excel: “Add up all the numbers from A1 to A10, then divide by however many numbers there are.”
That’s it. One formula. One answer.
Real examples you’ll actually use:
Finding your average monthly spend:
You have 12 months of expenses.
AVERAGE tells you what a “normal” month looks like.
Comparing product performance:
Product A averages $45 per sale. Product B averages $120.
Now you know where to focus.
Setting realistic goals:
Your team’s average weekly output is 23 reports.
Now you have a baseline to improve from.
Why this matters for your career:
Totals are beginner-level. Averages are analyst-level.
When a manager asks “What’s our average order value?” - They’re testing you.
They want to know if you can think beyond the obvious.
AVERAGE is how you go from reporting numbers to interpreting them.
And once you can interpret numbers? That’s when you start getting interviews.
YOUR 1-MINUTE PRACTICE PROJECT
Let’s calculate your average daily screen time (or any daily habit):
Step 1: Open Excel or Google Sheets right now. Yes, right now.
Step 2: In cell A1, type “Day”. In cell B1, type “Screen Time (hrs)”.
Step 3: Fill in your week:
A2: Monday | B2: 6
A3: Tuesday | B3: 4.5
A4: Wednesday | B4: 7
A5: Thursday | B5: 5
A6: Friday | B6: 8
A7: Saturday | B7: 3
A8: Sunday | B8: 2.5
Step 4: In cell B9, type: =AVERAGE(B2:B8)
Step 5: Press Enter.
You just calculated your average daily screen time.
Now try this: Change Saturday to 9 hours. Watch the average go up instantly.
That’s the power of AVERAGE. It adapts as your data changes.
BONUS: Want to level up?
In cell B10, type: =MAX(B2:B8) In cell B11, type: =MIN(B2:B8)
Now you know your average, your highest day, and your lowest day. That’s three insights from three formulas.
Time to complete: 60 seconds. Portfolio value: Priceless.
Next week, I’ll teach you COUNT — the function that tells you where your data is concentrated.
SUM gives you the total. AVERAGE gives you the benchmark. COUNT gives you the volume.
Together, they answer 80% of the business questions you’ll face.
Keep building. Keep learning.
You’ve got this.
Stanley