When you insert a function as one of the arguments within another function in Excel, it’s called nesting functions. For example, you can nest an AVERAGE function within an IF function if you want to base the logical test on a calculated average.
The syntax for nested functions will vary greatly, as the combinations for combining functions is nearly limitless. Here’s an example of what a nested function might look like: =IF(D2>AVERAGE($B$2:$B$10),"Yes","No").