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Exercise 21 of 41 · Data analysis · Intermediate · 9 min

Typical Salary: AVERAGE, MEDIAN, LARGE and SMALL

Your task: In D2:D5, find the average and median salary, the 3rd highest, and the 2nd lowest.

Full instructions, scenario and goal

Scenario

An HR analyst is preparing a salary summary for a small department. Eight employees earn between 36,900 and 45,100, but the head of department earns far more. The analyst wants to show how much that one salary distorts the average, and to list the third-highest and second-lowest salaries.

Your task

  1. In D2, calculate the average salary of the nine employees.
  2. In D3, calculate the median salary.
  3. In D4, find the third-highest salary.
  4. In D5, find the second-lowest salary.
  5. Use the salary range B2:B10 in every formula, then select Check Answer.

You are done when

  • The average and the median both read the whole salary list.
  • The ranked values come from functions that sort for you, not from reading the table by eye.

What you will practise

Choose between the average and the median when data has an outlier, and pick the nth largest or smallest value with LARGE and SMALL.

The idea in 30 seconds

The average adds everything up and divides by the count, so one extreme value pulls it a long way. The median is the middle value once the numbers are sorted (or the mean of the two middle ones when there is an even count), so an extreme value barely moves it. When data is skewed, such as salaries, house prices or response times, the median is usually a fairer description of what is typical.

Read the full explanation below the sheet

Spreadsheet

D2
A
B
C
D
1
2
3
4
5
6
7
8
9
10

Loading spreadsheet…

Keyboard shortcuts
Arrow keys
Move between cells
Shift + Arrow keys, or drag with the mouse
Select a range
Ctrl + Arrow keys
Jump to the edge of a block of data
Type, or F2, or double-click
Edit a cell (F2 switches arrow keys between moving and editing)
Click or arrow keys inside a formula
Insert a cell reference after =, +, (, comma and similar
F4
Cycle a reference through A1, $A$1, A$1, $A1
Enter / Tab while editing
Confirm and move down / right (Shift reverses)
Esc
Cancel the edit
Ctrl + C / X / V
Copy, cut and paste (formulas adjust like in Excel)
Delete
Clear the selected cells
Ctrl + Z / Ctrl + Y
Undo and redo
Ctrl + Enter
Check your answer
Tab when not editing
Leave the spreadsheet

Type your answer in cell D2. Click a cell and type. Enter confirms, Esc cancels, Ctrl+Enter checks your answer.Tap a highlighted cell to type in it, then tap the green tick to confirm. Scroll the sheet sideways if it is wider than your screen.

New here? How an exercise works
  1. Read the task. Highlighted cells are yours to fill in; the rest are locked.
  2. Select (or tap) a highlighted cell and type a formula. It starts with =, like =A1+B1.
  3. Press Check answer. Stuck? Reveal hints one at a time.

The full explanation: the idea behind this exercise

The average adds everything up and divides by the count, so one extreme value pulls it a long way. The median is the middle value once the numbers are sorted (or the mean of the two middle ones when there is an even count), so an extreme value barely moves it. When data is skewed, such as salaries, house prices or response times, the median is usually a fairer description of what is typical.

LARGE(range, k) returns the kth largest number: k = 1 is the maximum, k = 2 the runner-up, k = 3 the third. SMALL(range, k) does the same from the bottom. They sort the values for you, so you never have to rearrange the data. All of these functions ignore empty cells and text in the range.

Skills you will practise

  • MEDIAN
  • LARGE
  • SMALL
  • AVERAGE
  • Outliers

Complete first: Total, Average and Highest Monthly Spend

Common mistakes to avoid

Reporting the average of skewed data as typical
One very large value drags the average up. The median ignores how large the extreme values are.
Counting positions from the wrong end
LARGE counts from the top and SMALL from the bottom. LARGE(range,2) is the runner-up, not the second-lowest.