Arithmetic Mean
The mean, or arithmetic mean, is the sum of all values in a data set divided by the number of values. It is the most commonly used measure of central tendency.
Formula
Arithmetic mean = [Tex]\Sigma [/Tex]Xi / n
where,
Xi is the sum of values
n is number of values
Example
Consider the data set: 4, 8, 6, 5, 3.
Sum = 3+ 8 + 6 + 5 + 3 = 25.
Number of values = 5
Arithmetic Mean = 25/5
Arithmetic Mean = 5
Average Value and Calculation
Understanding averages is a fundamental aspect of quantitative analysis across various fields, from finance to academia, from sports to business. Whether it’s determining the average income of a population or the average score of a student, the concept of average value serves as a crucial tool for summarizing data and drawing meaningful insights. In this article, we delve into the essence of average value, its significance, and the methods to calculate it.
Table of Content
- What is Average Value?
- Types of Averages
- Arithmetic Mean
- Median
- Mode
- Comparing Mean, Median, and Mode
- Solved Examples on Average Value
- Practice Questions on Average Value