Using one Excel function as an argument for a second Excel function is an important skill to master. This process can become fairly complex, for example, a Nested-IF statement. Here is an extremely simple example of how to go about using the AVERAGE() function as the first argument to the ROUND() function.
Required knowledge:
1. Average
The AVERAGE() function takes one argument: a range of cells.
2. Round
The ROUND() function takes two arguments: a number to round off and the number of decimals that the number must be rounded off to. The first argument could be a number, a reference to a cell that contains a number, or a function that returns a number.
3. Combined
In the example below, the first argument of the ROUND() function is the AVERAGE() function; in other words, the ROUND() function is going to “round off” the number returned by the AVERAGE() function. The second argument of the ROUND() function is the number 0 (the result will have no decimal points).

This simple example sets the scene for more complex calculations, such as Nested IF() statements. For an additional example, see the post: Using Excel’s AND() function.