Arithmetic average

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Related to Arithmetic average: Geometric Average, Arithmetic Average Rate of Return

Arithmetic average (mean) rate of return

Arithmetic Mean Average

An average calculated by adding the value of the points in a data set and dividing the sum by the number of data points. For example, suppose one wishes to calculate the average income of a country with exactly five people in it, and their incomes are $25,000, $26,000, $43,000, $70,000, and $72,000. It is calculated as:

($25,000 + $26,000 + $43,000 + $70,000 + $72,000) / 5 = $47,200.

A limitation to the arithmetic mean average is that it can be overly affected by extremes in either direction. For example, if one of the five persons in the country earns $100 billion per year, the arithmetic mean average income would be in the billions and would not accurately count the other four citizens. For this reason, many analysts use the median in conjunction with the arithmetic mean average. The arithmetic mean average is also called simply the mean.
References in periodicals archive ?
t] [square root of dt] where t=1 to T, it follows by Jensen's inequality that for N [greater than] 1, the arithmetic average is biased upward:
When N = 1, the arithmetic average receives all the weight.
28 mm/min, to estimate the arithmetic average roughness [R.
4 Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period.
Based on the arithmetic average of the daily volume-weighted average price per share of shares of Alleghany common stock for each of the 20 consecutive trading days ending on June 10, 2009 of $260.
It also announced that the DRP would be in operation for this dividend and the DRP Price of Shares would be calculated as the arithmetic average of the daily volume weighted average market price during a period of 10 trading days commencing on the second trading day immediately following the Record Date.
9-m-wide structure, the 105 remaining samples had a weighted arithmetic average grade of 3.
The base price will be the arithmetic average of the daily settlement price for the "WTI" futures contract reported by the New York Mercantile Exchange "NYMEX" using the "CMA ALL DAYS" formula which is the calendar month NYMEX prices for the month of delivery, deemed 40 degrees gravity and deemed delivered in equal daily quantities.
Paramount recently completed five holes totalling 1,139 metres in order to test a geochemical anomaly measuring 700 m x 500 m where the arithmetic average of 263 surface samples with gold values greater than 300 ppb Au (0.
5 times the arithmetic average of the London silver fixing spot price for an ounce of silver in the London bullion market on each of the 20 trading days ending on June 28, 2006 (equivalent to $10.
1] Average annual total return at NAV represents the simple arithmetic average of the annual NAV total returns of the Fund for the period from inception (06/29/2010) through November 30, 2014.
Pearson correlation and unweighted pair group method with arithmetic averages (UPGMA) algorithms were applied for generating dendrogram (Figure 2).