I have a column in a spreadsheet labled SEX with the value of 1 or 2 for male or female. How do I calculate the average number of males and females? Or should I use a different value to calculate??

Total the ones (or the twos) with an IF statement (or both)..
IF(SEX=1;M+1;F+1).
That will give you the ratio of M vs F; ratio of Ms and Fs in population is straightforward from there.
An average does not strictly apply in your case.

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