Statistical Functions in Microsoft Excel

As you read, review Table 1, which outlines the most common statistical functions in Microsoft Excel. You can apply these functions to a large set of data entered in a spreadsheet. The rest of this section details how to use each type of function in a budget spreadsheet.

The Average Function

The next function we will add to the Budget Detail worksheet is the AVERAGE function. This function is used to calculate the arithmetic mean for a group of numbers. For the Budget Detail worksheet, we will use the function to calculate the average of the values in the Annual Spend column. We will add this to the worksheet by using the Function Library. The following steps explain how this is accomplished:

  1. Click cell D14 in the Budget Detail worksheet
  2. Click the Formulas tab on the Ribbon
  3. Click the More Functions button in the Function Library group of commands
  4. Place the mouse pointer over the Statistical option from the drop-down list of options
  5. Click the AVERAGE function name from the list of functions that appear in the menu (see Figure 2.19). This opens the Function Arguments dialog box.
  6. Click the Collapse Dialog button in the Function Arguments dialog box (see Figure 2.20)
  7. Highlight the range D3:D11
  8. Click the Expand Dialog button in the Function Arguments dialog box (see Figure 2.21); you can also press the ENTER key to get the same result
  9. Click the OK button on the Function Arguments dialog box; this adds the AVERAGE function to the worksheet


Figure 9 illustrates how a function is selected from the Function Library in the Formulas tab of the Ribbon.

Press F6 until ribbon pane is activated, then M to select Formulas, then Q to select More Functions. Press S to select Statistical menu item, then scroll down to select the Average function.

Figure 9 Selecting the AVERAGE Function from the Function Library


Figure 10 shows the Function Arguments dialog box. This appears after a function is selected from the Function Library. The Collapse Dialog button is used to hide the dialog box so a range of cells can be highlighted on the worksheet and then added to the function.

Function Arguments dialog box open to Average function, with function definition, and Collapse Dialog button.

Figure 10 Function Arguments Dialog Box


Figure 11 shows how a range of cells can be selected from the Function Arguments dialog box once it has been collapsed.

When Function Arguments dialog box is collapsed, cell range can be highlighted with function appearing in cell as it is being built.

Figure 11 Selecting a Range from the Function Arguments Dialog Box


Figure 12 shows the Function Arguments dialog box after the cell range is defined for the AVERAGE function. The dialog box shows the result of the function before it is added to the cell location. This allows you to assess the function output to determine whether it makes sense before adding it to the worksheet.

Function Arguments dialog box shows first few values next to cell range, and output of function appears both in center of box and at bottom as "formula result".

Figure 12 Function Arguments Dialog Box after a Cell Range Is Defined for a Function


Figure 13 shows the completed AVERAGE function in the Budget Detail worksheet. The output of the function shows that on average we expect to spend $1,994 for each of the categories listed in Column A of the budget. This average spend calculation per category can be used as an indicator to determine which categories are costing more or less than the average budgeted spend dollars.

The AVERAGE function at top of worksheet as "=AVERAGE(D:3D11)" and output of "$1,994" in cell D14.

Figure 13 Completed AVERAGE Function