Arithmetic mean: Difference between revisions
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The arithmetic mean of a set of data is the simple average calculated by adding up all of the values and dividing by the total number of items. | The arithmetic mean of a set of data is the simple average calculated by adding up all of the values and dividing by the total number of items. | ||
For example, the arithmetic mean of 4%, 5% and 6% is | For example, the arithmetic mean of 4%, 5% and 6% is: | ||
= ( 4% + 5% + 6% ) / 3 | = (4% + 5% + 6%) / 3 | ||
= 15% / 3 | |||
= 5%. | = 5%. | ||
Also sometimes known as the Mean | Also sometimes known more simply as the Mean. | ||
Sometimes denoted by 'µ' - the Greek letter ''mu'' (or m). | Sometimes denoted by 'µ' - the Greek letter ''mu'' (or m). | ||
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== See also == | == See also == | ||
* [[Composite indices]] | * [[Composite indices]] | ||
*[[Expected cash flow]] | |||
* [[Expected value]] | * [[Expected value]] | ||
* [[Geometric mean]] | * [[Geometric mean]] | ||
[[Category:The_business_context]] | |||
Latest revision as of 18:16, 21 July 2022
Maths.
The arithmetic mean of a set of data is the simple average calculated by adding up all of the values and dividing by the total number of items.
For example, the arithmetic mean of 4%, 5% and 6% is:
= (4% + 5% + 6%) / 3
= 15% / 3
= 5%.
Also sometimes known more simply as the Mean.
Sometimes denoted by 'µ' - the Greek letter mu (or m).
