Here's a method that doesn't use ArrayList. The user specifies the size and you can add a do-while loop for recursion.
import java.util.Scanner;
public class Dynamic {
public static Scanner value;
public static void main(String[]args){
value=new Scanner(System.in);
System.out.println("Enter the number of tests to calculate average\n");
int limit=value.nextInt();
int index=0;
int [] marks=new int[limit];
float sum,ave;
sum=0;
while(index<limit)
{
int test=index+1;
System.out.println("Enter the marks on test " +test);
marks[index]=value.nextInt();
sum+=marks[index];
index++;
}
ave=sum/limit;
System.out.println("The average is: " + ave);
}
}