[COLOR=#333333]=(COUNTIF(D3:D60,"Pass")-COUNTBLANK(D3:D60))/ROWS(D3:D60)[/COLOR]
=COUNTIF(D3:D60,"Pass")/(ROWS(D3:D60)-COUNTBLANK(D3:D60))
My initial thought, but upon further inspection of their formula, it looks like the range has text, and they are trying to count/average the number of cells containing certain text (i.e. "PASS").If the cells are really blank/empty, AVERAGE() should ignore them anyway?