The mod internally maintains a list of all objects tracked, which it goes through round-robin. Each tick, it evaluates objects up to the max updates per tick or the length of the list, whichever is lower.
So, if there are 300 objects and max updates is 600, it will process the entire list of 300 objects each tick (it won't evaluate them all twice because of the length-of-list limitation).
If there are 1,500 objects and max updates is 600, it will process 600 of those objects every tick - so it may go #101-#700 in tick 1, #701-#1300 in tick 2, #1301-#1500 and rollover to do #1-300 on tick 3, etc.
The averaging algorithm adapts to the number of samples collected in the past measurement interval (one second) when it calculates and shows the averages for the past N minutes. So the first time an object is looked at in each second (there are 60 ticks in a second), that averaging occurs and the displayed numbers updated.