1diff --git a/src/RawFormulas.ts b/src/RawFormulas.ts
 2index d653e03..67e0e74 100644
 3--- a/src/RawFormulas.ts
 4+++ b/src/RawFormulas.ts
 5@@ -27,6 +27,21 @@ function checkArgumentsAtLeastLength(args: any, length: number) {
 6   }
 7 }
 8 
 9+/**
10+ * Filter out all strings from an array.
11+ * @param arr to filter
12+ * @returns {Array} filtered array
13+ */
14+function filterOutStringValues(arr: Array<any>) : Array<any> {
15+  var toReturn = [];
16+  for (var i = 0; i < arr.length; i++) {
17+    if (typeof arr[i] !== "string") {
18+      toReturn.push(arr[i]);
19+    }
20+  }
21+  return toReturn;
22+}
23+
24 
25 /**
26  * Converts any value to a number or throws an error if it cannot coerce it to the number type
27@@ -314,7 +329,33 @@ var ATANH = function (value?) : number {
28 
29 
30 var AVEDEV = Formula["AVEDEV"];
31-var AVERAGE = Formula["AVERAGE"];
32+
33+/**
34+ * Returns the numerical average value in a dataset, ignoring text.
35+ * @param values The values or ranges to consider when calculating the average value.
36+ * @returns {number} the average value of this dataset.
37+ * @constructor
38+ */
39+var AVERAGE = function (...values) : number {
40+  checkArgumentsAtLeastLength(values, 1);
41+  var result = 0;
42+  var count = 0;
43+  for (var i = 0; i < values.length; i++) {
44+    if (values[i] instanceof Array) {
45+      if (values[i].length === 0) {
46+        throw new CellError(ERRORS.REF_ERROR, "Reference does not exist.");
47+      }
48+      var filtered = filterOutStringValues(values[i]);
49+      result = result + SUM.apply(this, filtered);
50+      count += filtered.length;
51+    } else {
52+      result = result + valueToNumber(values[i]);
53+      count++;
54+    }
55+  }
56+  return result / count;
57+
58+};
59 var AVERAGEA = Formula["AVERAGEA"];
60 var AVERAGEIF = Formula["AVERAGEIF"];
61 var BASE = Formula["BASE"];
62diff --git a/tests/FormulasTest.ts b/tests/FormulasTest.ts
63index ac53cb2..a2ff686 100644
64--- a/tests/FormulasTest.ts
65+++ b/tests/FormulasTest.ts
66@@ -187,7 +187,24 @@ catchAndAssertEquals(function() {
67 
68 assertEquals(AVEDEV(1, 2, 4, 56.7), 20.3875);
69 
70-assertEquals(AVERAGE(10, 20, 4.1), 11.366666666666667);
71+assertEquals(AVERAGE(1, 2, 4, 55), 15.5);
72+assertEquals(AVERAGE(1, 2, 4, "55"), 15.5);
73+assertEquals(AVERAGE(1, 2, 4, 55, false), 12.4);
74+assertEquals(AVERAGE(1, 2, 4, 55, true), 12.6);
75+assertEquals(AVERAGE(1, 2, 4, 55, 0), 12.4);
76+assertEquals(AVERAGE(1, 2, 4, 55, 1), 12.6);
77+catchAndAssertEquals(function() {
78+  return AVERAGE(1, 2, 4, "str");
79+}, ERRORS.VALUE_ERROR);
80+assertEquals(AVERAGE([1, 2, 4, 55, "str"]), 15.5);
81+assertEquals(AVERAGE([1, 2, 4, 55, "22"]), 15.5);
82+assertEquals(AVERAGE([0]), 0);
83+catchAndAssertEquals(function() {
84+  return AVERAGE();
85+}, ERRORS.NA_ERROR);
86+catchAndAssertEquals(function() {
87+  return AVERAGE([]);
88+}, ERRORS.REF_ERROR);
89 
90 assertEquals(AVERAGEA(10, 20, 4.1), 11.366666666666667);
91