AVERAGE function in Google Sheets - Real Business Scenario

Scenario Mode

👤 Your Role: You are a sales analyst at a retail company.

📋 Request: Your manager wants to know the average sales amount per transaction for the last month.

📊 Data: You have a list of sales transactions with the transaction ID and the sales amount in dollars.

🎯 Deliverable: Create a simple report that shows the average sales amount per transaction using the AVERAGE function.

Sample Data

Transaction ID	Sales Amount ($)
1001	150
1002	200
1003	175
1004	225
1005	190
1006	210
1007	160
1008	180

1

Step 1: Open your Google Sheets and enter the sample data exactly as shown, with Transaction ID in column A and Sales Amount in column B, starting from row 1.

Expected Result

Data table with 8 rows of transactions and sales amounts.

2

Step 2: Select a cell below your data, for example B10, where you want to calculate the average sales amount.

Expected Result

Empty cell ready for formula input.

3

Step 3: Enter the formula to calculate the average sales amount using the AVERAGE function on the sales amount column.

=AVERAGE(B2:B9)

Expected Result

The cell shows 186.25, which is the average of the sales amounts.

4

Step 4: Label the cell next to the average result (for example, cell A10) with the text 'Average Sales Amount' to make the report clear.

Expected Result

Cell A10 shows 'Average Sales Amount' and cell B10 shows 186.25.

Final Result

Transaction ID | Sales Amount ($)
-------------- | -----------------
1001           | 150
1002           | 200
1003           | 175
1004           | 225
1005           | 190
1006           | 210
1007           | 160
1008           | 180

Average Sales Amount: 186.25

✓The average sales amount per transaction last month was $186.25.

✓This helps understand typical transaction size for the business.

Bonus Challenge

Calculate the average sales amount only for transactions above $180.

Show Hint

Use the AVERAGEIF function with a condition like ">180" on the sales amount column.