what is arithmetic mean?
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in mathematics and statistics the Arithmetic means aur simply the means Aur Do average in the sum of a collection of number divided by the count of number in the collection the collection is options set of result of an experiment aur an observational study aur frequently a set of result from a survey.
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WHAT IS ARITHMETIC MEAN ?
- The arithmetic mean is the simplest and most widely used measure of a mean, or average.
- It simply involves taking the sum of a group of numbers, then dividing that sum by the count of the numbers used in the series. For example, take the numbers 34, 44, 56, and 78. The sum is 212. The arithmetic mean is 212 divided by four i.e 53.
- People also use several other types of means, such as the geometric mean and harmonic mean, which comes into play in certain situations in finance and investing.
- Another example is the trimmed mean, used when calculating economic data such as the consumer price index (CPI) and personal consumption expenditures (PCE).
KEY TAKEAWAYS
- The arithmetic mean is the simple average, or sum of a series of numbers divided by the count of that series of numbers.
- In the world of finance, the arithmetic mean is not usually an appropriate method for calculating an average, especially when a single outlier can skew the mean by a large amount.
- Other averages used more commonly in finance include the geometric and harmonic mean.
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