New Members

Earn Revenue

Help
Login
Register
Forum
Articles
Practice Tests
Ask Experts
Question Papers
Jobs
More »
Universities
Colleges
Courses
Schools
Search
Admissions
Exam Results
Reviews
Learn English
Social Hub
New Posts
My India
Post Content
Resources
»
Education
Arithmetic mean
Updated:
22Oct2009
Category:
Education
Author:
Kiran Kumar
Member Level:
Gold
Points
: 20
Arithmetic mean is the number which is obtained by adding the value of all items of a series and dividing the total by the number of items.
Types:
1. Simple arithmetic mean
2. Weighted arithmetic mean
Simple arithmetic mean
(1) Direct method
:
It involves the following steps:
(a) Value of the various items in the series are indicated by x, and their frequencies by ‘f’
(b) Each item is multiplied by its frequency to get ‘f’ and ‘x’ these multiple are added to get FX.
(2)
Short cut method:
Before calculating the actual average of the series, some value which lies in the middle of the series is taken as assumed average.
(3)
Step deviation method:
This method is variant of the short cut method. It is adopted when deviation from the assumed mean have some common factor. A notable property of arithmetic mean is that the sum of deviations of different items of a series, when deviations are taken from arithmetic mean, is always zero.
Merits of arithmetic mean
(1)
Simplicity:
 From the view point of calculation and usage, arithmetic mean is the simplest of all the measurers of central tendency.
(2)
Certainty:
Arithmetic mean is a certain value; it has no scope for estimated values.
(3)
Based on all items:
 It is based on all items in a series. It is, therefore, a representative value of the different items.
(4)
Algebraic treatment:
 It is capable of further algebraic treatment. It is, therefore, extensively used in statistical analysis.
(5)
Stability:
 It is a stable measure of central tendency. This is because changes in the simple of a series have minimum effect on the arithmetic average.
(6)
Basis of comparison:
 Being stable and certain, arithmetic mean can be easily used for comparison.
(7)
Accuracy test:
 It can be tested for its accuracy as a representative value of the series.
Demerits of arithmetic mean
Following are the various demerits of arithmetic mean:
(1)
Effect of extreme value:
 The main defect of arithmetic mean is that it gets destroyed by extreme value of the series. Therefore, it is not always an accurate measure.
(2)
Mean value nay not figure in the series at all :
 The mean value may sometimes be that value which does not figure in the series at all.
(3)
Laughable conclusions:
 It is sometimes offer laughable conclusion.
(4)
Unsuitability:
 It is not a suitable measure in case of percentage or proportionate values.
(5)
Misleading conclusions:
 Arithmetic mean sometimes offers misleading conclusion.
Conclusion
However, despite certain demerits of arithmetic mean as noted above, this is an ideal measure of the central tendency. This is most widely used measure in practical life. Arithmetic mean is particularly significant in such series of which different items are equally important and, therefore, equally weighted. Average output, average cost, average revenue, are some of the well known concepts in economics based on arithmetic mean.
Did you like this resource? Share it with your friends and show your love!
Tweet
Responses to "
Arithmetic mean
"
No responses found. Be the first to respond...
Feedbacks
Post Comment:
Notify me by email when others post comments to this article.
Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
No HTML formatting and links to other web sites are allowed.
This is a strictly moderated site. Absolutely no spam allowed.
Name:
Sign In
to fill automatically.
Email:
(Will not be published, but
required
to validate comment)
Type the numbers and letters shown on the left.
Submit Article
Return to
Article Index
Subscribe to Email
Get Jobs by Email
Forum posts by Email
Articles by Email
Awards & Gifts
Active Members
Today
R Pramod
(151)
M. K.
(101)
Kailash Kumar
(74)
Last 7 Days
R Pramod
(1497)
M. K.
(772)
Kailash Kumar
(740)
more...
Online Members
Sun
rakesh Singh
M. K.
Vijay Kumar Vishwakarma
Ravi Shankar Kumar G
Hariom bhardwaj
plshirts
smitha
Phagu Mahato
arun kumar singh
shubham
More...
Click the "Follow" button above to follow Tony John