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In this lesson, you’ll learn how to calculate the average pay rate for the careers you’re researching. Understanding the concept of an average, which is the central value in a set of numbers, is key. This is typically done by adding all the numbers in a set and then dividing by the number of items. Calculating the average pay rate is particularly useful as it offers a more realistic perspective on potential earnings. It balances out the extremes, as some companies may offer significantly higher or lower rates for the same job. To start, enter “Average” beneath your sources in the Pay Rate column for the first job on your spreadsheet and make it bold for emphasis.
The process of calculating the average pay rate involves using a formula within the spreadsheet, a method that is both faster and more accurate than manual addition. Plus, your average will automatically update if any of the input numbers change. Begin by selecting the cells that contain the pay rate data. These cell references in your formula indicate which cells to use in the calculation, allowing for automatic updates when the numbers in those cells are altered. Apply the AVERAGE formula, which automatically computes the average of the values in the selected cells, and observe how the total changes if you modify any of the referenced numbers. After completing these steps for one job, repeat the process to determine the average pay rates for additional careers. Now it’s your turn to add an “Average” label, use a formula to calculate the average pay rate, and repeat these steps for more careers.