Arithmetic Mean, or Arithmetic Average is the value obtained by dividing the sum of various values of series by number of items in series.
So to Define Arithmetic Mean, we say that Arithmetic Mean is the tool to measure central tendency of data. We use symbol '∑' to represent total sum of readings of given data. It is called as SIGMA. Thus we say that ∑X is written in place of 'n' items in given data. So to find Arithmetic Mean of given data, we use formula given by: Arithmetic Mean = ∑ X / N.
In case of continuous or grouped frequency distribution, value of 'x' is taken as mid Point of corresponding class. Use of arithmetic mean is very simple and it can be calculated very easily, so it is commonly used in study and analysis of business and economy. In case we are dealing with certain data related to average income, average expenditure, average profit, average loss, wages, incomes and other fields like average score of child, then that the data used can be converted to their average means.
There is another method of finding and computing A. M., which we call as short cut method of computing mean. Here we will first find the assumed mean of given data. So we can find arithmetic mean by using following method:
A.M. = A + ∑ d / N.
Here we say that 'A' is assumed mean or arbitrarily selected value, d = deviation of each value from given assumed mean.
Arithmetic mean is also called mean or average; it is equals to sum of Numbers divided by total numbers. Total quantity can also be referred to size of collection. Arithmetic mean can also be defined as average or mean of all values that is sum of values divide by total number of values.
Suppose we want to calculate Arithmetic Mean of 'p' numbers, which are n...Read More
Weighted average is similar to Arithmetic Mean or average. In case of weighted average, some values play are important than other values while in arithmetic mean each value contributes to final average. Weighted Average Definition states that a common term called ‘weight’ is used in case of weighted average which indicates that some values have greater contribution (wei...Read More
In Weighted Average some Numbers have greater contribution as compared to other values. Weighted average is similar to Arithmetic Mean. This method differs from arithmetic mean in only one way, in arithmetic mean all values have same weight-age. Term ‘Weight’ is used in weighted average method which defines more contribution of some specific values. If all value...Read More