Harmonic Meon full explanation
Answers
Step-by-step explanation:
The harmonic mean is a type of numerical average. It is calculated by dividing the number of observations by the reciprocal of each number in the series. Thus, the harmonic mean is the reciprocal of the arithmetic mean of the reciprocals.
Answer:
The harmonic mean is often used to calculate the average of the ratios or rates. It is the most appropriate measure for ratios and rates because it equalizes the weights of each data point. ... In finance, the harmonic mean is used to determine the average for financial multiples such as the price-to-earnings (P/E) ratio.
Mathematically, the harmonic mean between two numbers a and b is defined as. H = 2/ (1/a + 1/b) This can further be written as: H = 2ab/(a+b)
The harmonic mean has the following merits. It is rigidly defined. It is based on all the observations of a series i.e. it cannot be calculated ignoring any item of a series. It is capable of further algebraic treatment. It gives better result when the ends to be achieved are the same for the different means adopted.