Arithmetic Mean Average

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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 ?
Also a new method to give asymptotics for mean values, when they are not too small.
Chloride Levels (Mean Levels of the 5 Replicas) MEAN VALUES OF THE TARGET CHLORIDE CL OF TESTING VALUE OF PREP THE ELEC ELECTRODE TRODE AFTER SIR Spacing ug/in2 ug/in2 ug/in2 (mil) A1-6-1 to 5 6 1 1.
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The median and mean values of wealth rise systematically with usual income, a relationship reflecting a higher level of saving among higher-income families, and the feedback effect of higher incomes from the accumulated assets.
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