The $avg accumulator in MongoDB is used inside an aggregation pipeline's $group stage. It groups documents by a specified key, then calculates the average of a numeric field within each group. This happens by summing the field values and counting the documents, then dividing sum by count. For example, grouping sales by item and averaging quantity sold per item. The execution table shows step-by-step how each document updates sums, counts, and averages. Beginners often wonder why averages change after each document; it's because sums and counts update incrementally. Also, if a group has only one document, average equals that document's value. Adding more documents changes sums and counts, thus changing averages accordingly.