While both functions seem similar at first glance, they serve distinct purposes and can yield different results depending on your data. In this article, we’ll explore the nuances of these two formulas, explain how they work, and provide practical examples to help you understand when to use each one effectively.
AVERAGE Formula: Calculating the Mean
Let’s start by examining the AVERAGE formula. This widely used function calculates the arithmetic mean of a range of numbers in Excel. It adds up all the numbers in the specified range and divides the sum by the count of those numbers. The AVERAGE formula ignores any non-numeric values, empty cells, or cells containing text.
| A | |
| 1 | 10 |
| 2 | 20 |
| 3 | 30 |
| 4 | TEXT |
| 5 | 40 |
| 6 | =AVERAGE(A1:A5) |
Example:
The formula =AVERAGE(A1:A5) would return the average of 10, 20, 30, and 40, ignoring the non-numeric value in cell A4.
AVERAGEA Formula: Including Non-Numeric Values
Now, let’s turn our attention to the AVERAGEA formula. Unlike the AVERAGE formula, AVERAGEA includes non-numeric values, such as text or logical values (TRUE/FALSE), in its calculations. It treats non-numeric values as zero when calculating the average.
| A | |
| 1 | 10 |
| 2 | 20 |
| 3 | 30 |
| 4 | TEXT |
| 5 | 40 |
| 6 | =AVERAGEA(A1:A5) |
Example:
Using the same data as before, if we apply the formula =AVERAGEA(A1:A5), it would return the average of 10, 20, 30, the treated value of 0 for the non-numeric cell A4, and 40.
When to Use Each Formula
- Use AVERAGE when you want to calculate the mean of a range of numeric values and ignore any non-numeric cells.
- Use AVERAGEA when you want to include non-numeric values in your calculations, treating them as zero.
Practical Applications
- Financial Analysis: AVERAGE can be useful for calculating the average monthly sales figures, excluding any text entries or empty cells.
- Data Validation: AVERAGEA can help analyze survey responses, where non-numeric values indicate different categories or responses.