What is an Arithmetic Mean?
- Content Type:
- Glossary
Arithmetic Mean Definition
The sum of the values for all observations of a variable divided by the number of observations.
The arithmetic mean, also known as the average, is calculated by adding a set of numbers, then dividing the sum by the count of those numbers. This critical mathematical operation provides a representative value that balances the number set by simplifying several numbers into a single value. That one number helps in making comparisons and informed decisions.
Who relies on the arithmetic mean?
There are many fields and disciplines that rely on arithmetic mean, or average, to analyze data. These include mathematics, economics, science, social sciences and engineering. Researchers, analysts and decision-makers often use it for data interpretation.
Why should I care about the arithmetic mean?
Understanding the arithmetic mean simplifies complex datasets into a single value, aiding in comparisons and making informed decisions. It's a critical tool for interpreting information involving numbers.