Excel - AVERAGEIFS and IFERROR Tutorial

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Objectifs :

Understand how to calculate average sales by region using the AVERAGEIFS function in Excel, handle errors with the IFERROR function, and apply these concepts to real-world scenarios.

Chapitres :

Introduction to AVERAGEIFS Function
In this section, we will explore how to determine the average sales by region for salespeople who have 50 or more orders. The AVERAGEIFS function allows us to calculate averages based on multiple criteria, making it a powerful tool for data analysis in Excel.
Selecting the Data Range
To begin, we select the range of cells we want to average. In this case, we will average the sales data located in cells D2 through D7. By pressing F4, we can make this an absolute cell reference, ensuring that our range remains constant when we copy the formula.
Setting Criteria for Evaluation
Next, we will select the first range of cells to evaluate, which corresponds to the Region column. We then specify the criteria for this range, focusing on the North region. Additionally, we will select the range of cells that represent the number of orders, ensuring we only include salespeople with 50 or more orders.
Understanding the AVERAGEIFS Function
The AVERAGEIFS function works similarly to the SUMIFS function, allowing us to evaluate specific conditions. In our example, we have two salespeople, Mo and Dave, in the North region. Both have orders greater than or equal to 50, so the function averages their sales, resulting in an average of 63,370.
Handling Errors in AVERAGEIFS
It's important to note that the average for the South region results in a divide by zero error. This occurs because Wei, the only salesperson in the South region, has fewer than 50 orders. When no cells meet the criteria, AVERAGEIFS returns this error. We will learn how to handle this situation using the IFERROR function.
Using the IFERROR Function
To enhance our formula, we can wrap the AVERAGEIFS function inside an IFERROR function. This function checks for errors and allows us to specify a value to return if an error occurs. In this case, we will return 'NA' if AVERAGEIFS evaluates to an error. As a result, the South region will no longer display an error.
Syntax of AVERAGEIFS and IFERROR
The syntax for the AVERAGEIFS function includes: - Average_range: The range of cells to average. - Criteria_range1: The first range evaluated. - Criteria1: The criteria for the first range. - Criteria_range2, Criteria2, etc.: Optional additional criteria. The IFERROR function syntax includes: - Value: The argument checked for an error. - Value_if_error: The value returned if an error is found.
Conclusion
In summary, we have learned how to use the AVERAGEIFS function to calculate average sales by region while considering specific criteria. We also explored how to handle errors using the IFERROR function, ensuring our calculations remain robust and informative. Mastering these functions enhances our ability to analyze data effectively in Excel.

FAQ :

What is the AVERAGEIFS function used for in Excel?

The AVERAGEIFS function is used to calculate the average of a range of cells that meet multiple criteria, allowing for more complex data analysis.

How do I handle a divide by zero error in Excel?

You can handle a divide by zero error in Excel by using the IFERROR function, which allows you to specify a value to return if an error occurs.

What is the difference between AVERAGEIFS and SUMIFS?

AVERAGEIFS calculates the average of cells that meet specified criteria, while SUMIFS sums the values of cells that meet those criteria.

Can I use wildcard characters in the AVERAGEIFS function?

Yes, you can use wildcard characters such as the question mark (?) and asterisk (*) in the criteria for the AVERAGEIFS function to match specific patterns.

What should I do if my AVERAGEIFS function returns an error?

If your AVERAGEIFS function returns an error, you can wrap it in the IFERROR function to return a more user-friendly value instead of the error.

Quelques cas d'usages :

Sales Performance Analysis

A sales manager can use the AVERAGEIFS function to analyze the average sales of salespeople in different regions who have met a minimum order threshold, helping to identify top performers.

Error Handling in Financial Reports

An accountant can implement the IFERROR function in financial reports to ensure that any errors in calculations, such as divide by zero errors, are handled gracefully, improving the report's readability.

Market Research

A market analyst can use the AVERAGEIFS function to calculate the average sales of products in specific regions, allowing for targeted marketing strategies based on performance data.

Inventory Management

A supply chain manager can apply the AVERAGEIFS function to assess the average sales of items that meet certain criteria, aiding in inventory forecasting and management.

Performance Reviews

HR professionals can utilize the AVERAGEIFS function to evaluate the average performance metrics of employees who have completed a certain number of projects, facilitating fair performance reviews.

Glossaire :

AVERAGEIFS

A function in Excel that calculates the average of a range of cells that meet multiple specified criteria.

absolute cell reference

A reference in Excel that remains constant even when the formula is copied to another cell, typically denoted by a dollar sign (e.g., $D$2).

SUMIFS

A function in Excel that sums the values in a range that meet multiple specified criteria.

divide by zero error

An error in Excel that occurs when a formula attempts to divide a number by zero, resulting in an undefined value.

IFERROR

A function in Excel that returns a specified value if a formula results in an error; otherwise, it returns the result of the formula.

wildcard characters

Special characters used in Excel criteria to represent one or more characters; the question mark (?) represents a single character, and the asterisk (*) represents any number of characters.

00:00:06

where the sales person has 50 or more orders.

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We can do this with the AVERAGEIFS function.

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First we select the range of cells we want to average.

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In this case cells D2 through D7 in the sales column.

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I'm pressing F4 to make this an absolute cell reference.

00:00:30

Next we'll select the first range of cells we want to evaluate;

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the range of cells in the Region column.

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Then we select the criteria by which the range is evaluated,

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in this case, East, cell F2;

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then we select the range of cells for the number of orders,

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and the criteria it needs to meet.

00:00:59

In the North region, for sales people having 50 or more orders,

00:01:04

their average sales are $63,370.

00:01:11

Let's walk through this; it's similar to the SUMIFS function:

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first the function evaluates how many cells in the region column

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contain a specific region.

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In this example: North.

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There are two: Mo and Dave are the salespeople for the North region.

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Of these two, SUMIFS then evaluates how many have orders

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greater than or equal to 50.

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For North, this is both Mo and Dave.

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Lastly, the function averages the cells from the range of

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cells in the sales column, where all the corresponding criteria are met.

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The average of Mo and Dave's sales is $63,370.

00:02:07

You'll notice that the average for the South region is a divide by zero error.

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I'll show you why, and how to handle this in a minute.

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AVERAGEIFS returns the average of cells that meet multiple criteria.

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This is the syntax of the AVERAGEIFS function:

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average range is required, it's one or more cells to average;

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blank and text values are ignored.

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Criteria range 1 is required, it's the first range that's evaluated.

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Criteria 1 is required; it's the criteria by which

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Criteria range 1 is evaluated.

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Criteria range 2; criteria 2, and so on, are optional.

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Each of the cells in the average range is used in

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the average calculation only if all the corresponding

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criteria specified are true for that cell.

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All criteria range must be the same size and shape as average range.

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You can use the question mark, an asterisk wildcard characters in criteria.

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As we saw before, the average for the South region

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returns a divide by zero error.

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Wei is the only salesperson in the south region, and she has fewer than 50 orders.

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If there are no cells that meet all the criteria,

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AVERAGEIFS returns the divide by zero error.

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We can enhance the formula with the IFERROR function to

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handle this and other error conditions.

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I'm putting the AVERAGEIFS function inside an IFERROR function.

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IFERROR returns the values specified, in this case NA,

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if AVERAGEIFS evaluates to an error.

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Otherwise it returns the result of the formula.

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And we see that the South region no longer returns an error.

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This is the syntax of the IFERROR function.

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Value is required.

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It's the argument that is checked for an error.

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Value if error is also required.

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It's what IFERROR returns if the value argument returns an error.

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Now you've got a pretty good idea about how to use IF functions in Excel.

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Of course there's always more to learn.

Mandarine AI: WHAT YOU SHOULD KNOW

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