Average Formula
The average formula is also known as the arithmetic mean, which is the ratio of the sum of all given observations to the total number of observations. Thus, using the average formula, the arithmetic means for any sample of data can be calculated. Let's learn about the average formula with a few examples in the end.
What Is the Average Formula?
In this section let's explore the average formula in detail and see its applications through some examples. The average formula for a given set of observations can be expressed as:
Average Formula = (Sum of all observations)/(Number of observations)
Now, let us go through some of the examples to understand the concept better.

Example 1: The monthly incentives received by an employee for five months are: $21, $27, $31, $19, $22. Using the average formula, calculate the average incentive received by the employee for these five months.
Solution:
To find: Average for the given set.
Given:
Incentives for five months(in $): {21, 27, 31, 19, 22}
Using Average Formula,
Average = (21 + 27 + 31 + 19 + 22)/5
= 120/5
= 24
Answer: Average incentive received by the employee is $24.

Example 2: The weight(lb) of students in a class are listed here: {20, 18, 23, 19, 25, 21}. Using the average formula, calculate the average weight of students in the class.
Solution:
To find: Average weight of students in a class.
Given:
Weights in lb: {20, 18, 23, 19, 25, 21}
Number of students = 6
Using Average Formula,
Average = \( \dfrac{20 + 18 + 23 + 19 + 25 + 21}{6}\)
= 126/6
= 21
Answer: Average weight of students is 21 lb.