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Arithmetic Mean

The document explains the concept of Arithmetic Mean, which is calculated by dividing the sum of observations by the number of observations. It details methods for calculating the mean for both discrete and continuous series, along with examples and steps involved. Additionally, it discusses the advantages and disadvantages of using Arithmetic Mean in data analysis.

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singh133167
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31 views6 pages

Arithmetic Mean

The document explains the concept of Arithmetic Mean, which is calculated by dividing the sum of observations by the number of observations. It details methods for calculating the mean for both discrete and continuous series, along with examples and steps involved. Additionally, it discusses the advantages and disadvantages of using Arithmetic Mean in data analysis.

Uploaded by

singh133167
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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10/17/2020

Arithmetic Mean

Dr. Richa Verma


Assistant Professor
Department of Home Science
DEI

Arithmetic Mean
• Arithmetic Mean of a given set of observations is their sum divided by
the number of observations. For Example-
• The Arithmetic Mean of 5,8,10,15,24 and 28 is:

Arithmetic Mean =

• Arithmetic Mean is usually denoted by :

X or AM

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Direct Method of Calculating Arithmetic Mean


RAW SERIES:

∑
X=

• X = Arithmetic Mean
• n = Total Number of Observations in the Sample (sample size)
= number/count of observation
• ∑ = Summation of all values

Direct Method of Calculating Arithmetic Mean


EXAMPLE: Intelligence Quotient (IQ) of 10 boys in a class are:
70, 120, 110 ,101, 88, 83, 95, 98, 107, 100
Find the mean IQ
SOLUTION: Mean IQ (X) of the 10 boys is calculated by:
∑
X=
70 120 110+101 88 83 95 98 107 100
X = =

X = 97.2

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Direct Method of Calculating Arithmetic Mean


DISCRETE SERIES CONTINUOUS SERIES

∑ ∑
X= X=
X = Arithmetic Mean X = Arithmetic Mean
f = Number of Observations (or frequency) f = Number of Observations (or frequency)
x= Each individual observation m= Mid-Point of each class
n=∑ n=∑
= Total Number of Observations in the Sample (sample size) = Total Number of Observations in the Sample (sample size)
= number/count of observation = number/count of observation
∑ = Summation of each observation with its frequency ∑ = Summation of mid point of each class with its
frequency

Direct Method of Calculating Arithmetic Mean


Steps of Calculating Arithmetic Mean Steps of Calculating Arithmetic Mean
for Discrete Series: for Continuous Series:

1. Multiply each observation(x) by its 1. Calculate Mid Point of each Class


corresponding frequency(f): fx 2. Multiply Mid Point of each class (m)
2. Obtain the total of the products by its corresponding frequency(f):
obtained in step 1, to get ∑fx fm
3. Divide the total obtained in step 2 3. Obtain the total of the products
by n, n= ∑ obtained in step 1, to get ∑fm
4. Divide the total obtained in step 2
Resulting value gives the Arithmetic by n, n= ∑
Mean Resulting value gives the Arithmetic
Mean

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EXAMPLE: Arithmetic Mean for Discrete Series

x f fx ∑
21 8 168
X=
25 10 250
43 12 516
51 5 255 X=
40 13 520
39 11 429 X=39.7
12 4 48
=n= = 63 = 2186

Arithmetic Mean for Continuous Series: Assumptions

• The class intervals must be closed.


• The width of each class interval should be equal.
• The values of the observations in each class interval must be uniformly distributed
between its lower and upper limits.
• The mid-value of each class interval must represent the average of all values in that
class, that is, it is assumed that all values of observations are evenly distributed
between the lower and upper class limits.

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EXAMPLE: Arithmetic Mean for Continues Series

Class f m fm ∑
0-5 7 2.5 17.5
X=
5-10 10 7.5 75
10-15 12 12.5 150 X=
15-20 15 17.5 262.5
20-25 13 22.5 292.5
25-30 11 27.5 302.5 X=17.03
30-35 4 32.5 130
=n= f = 72 fm= 1230

Advantages of Arithmetic Mean


• It is easy to calculate and understand.
• It is rigidly defined : The calculation of arithmetic mean is simple and it is unique,
that is, every data set has one and only one mean.
• It is based on all the observations given in the data set.
• The arithmetic mean is reliable single value that reflects all values in the data set.
• The arithmetic mean is least affected by fluctuations in the sample size. In other
words, its value, determined from various samples drawn from a population, varies
by the least possible amount.
• It is suitable for further mathematical treatment.

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Disadvantages of Arithmetic Mean


• The A.M. is reliable and reflects all the values in the data set. However, its strongest drawback is that
it is very much affected by the extreme observations (which are not representative of the rest of the
data set)
• Extreme observations at the high end will increase the mean, while outliers at the lower end will decrease it.
• For example, if monthly income of four persons is 50, 70, 80, and 1000, then their A.M. will be 300, which does not
represent the data.
• The value of A.M. cannot be calculated accurately for unequal and open-ended class intervals either
at the beginning or end of the given frequency distribution.
• It cannot be determined by inspection nor can be located graphically.
• The mean cannot be calculated for qualitative characteristics such as intelligence, honesty, beauty, or
loyalty.
• AM cannot be obtained if even a single observation is missing or lost or is illegible
• Drop it and compute the AM of the remaining values

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