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 or the Expected value E[X].
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).


See also