digplanet beta 1: Athena
Share digplanet:

Agriculture

Applied sciences

Arts

Belief

Business

Chronology

Culture

Education

Environment

Geography

Health

History

Humanities

Language

Law

Life

Mathematics

Nature

People

Politics

Science

Society

Technology

In mathematics and statistics, the arithmetic mean (pronounced arithMETic), or simply the mean or average when the context is clear, is the sum of a collection of numbers divided by the number of numbers in the collection. The collection is often a set of results of an experiment, or a set of results from a survey. The term "arithmetic mean" is preferred in some contexts in mathematics and statistics because it helps distinguish it from other means such as the geometric mean and the harmonic mean.

In addition to mathematics and statistics, the arithmetic mean is used frequently in fields such as economics, sociology, and history, and it is used in almost every academic field to some extent. For example, per capita income is the arithmetic average income of a nation's population.

While the arithmetic mean is often used to report central tendencies, it is not a robust statistic, meaning that it is greatly influenced by outliers (values that are very much larger or smaller than most of the values). Notably, for skewed distributions, such as the distribution of income for which a few people's incomes are substantially greater than most people's, the arithmetic mean may not accord with one's notion of "middle", and robust statistics such as the median may be a better description of central tendency.

Contents

Definition [edit]

Suppose we have a data set containing the values a_1,\ldots,a_n. The arithmetic mean A is defined via the expression

A=\frac{1}{n}\sum_{i=1}^{n} a_i.

If the data set is a statistical population (i.e., consists of every possible observation and not just a subset of them), then the mean of that population is called the population mean. If the data set is a statistical sample (a subset of the population) we call the statistic resulting from this calculation a sample mean.

The arithmetic mean of a variable is often denoted by a bar, for example as in \bar{x} (read "x bar"), which is the mean of the n values x1, x2, ..., xn.[1]

Motivating properties [edit]

The arithmetic mean has several properties that make it useful, especially as a measure of central tendency. These include:

  • If numbers x_1,\dotsc,x_n have mean \bar{x}, then (x_1-\bar{x}) + \dotsb + (x_n-\bar{x}) = 0. Since x_i-\bar{x} is the distance from a given number to the mean, one way to interpret this property is as saying that the numbers to the left of the mean are balanced by the numbers to the right of the mean. The mean is the only single number for which the residuals (deviations from the estimate) sum to zero.
  • If it is required to use a single number as a "typical" value for a set of known numbers x_1,\dotsc,x_n, then the arithmetic mean of the numbers does this best, in the sense of minimizing the sum of squared deviations from the typical value: the sum of (x_i-\bar{x})^2. (It follows that the sample mean is also the best single predictor in the sense of having the lowest root mean squared error.)[1] If the arithmetic mean of a population of numbers is desired, then the estimate of it that is unbiased is the arithmetic mean of a sample drawn from the population.

Contrast with median [edit]

The arithmetic mean may be contrasted with the median. The median is defined such that half the values are larger than, and half are smaller than, the median. If elements in the sample data increase arithmetically, when placed in some order, then the median and arithmetic average are equal. For example, consider the data sample {1,2,3,4}. The average is 2.5, as is the median. However, when we consider a sample that cannot be arranged so as to increase arithmetically, such as {1,2,4,8,16}, the median and arithmetic average can differ significantly. In this case the arithmetic average is 6.2 and the median is 4. In general the average value can vary significantly from most values in the sample, and can be larger or smaller than most of them.

There are applications of this phenomenon in many fields. For example, since the 1980s in the United States median income has increased more slowly than the arithmetic average of income.

Generalizations [edit]

Weighted average [edit]

A weighted average or weighted mean is an average in which some data points count more strongly than others, in that they are given more weight in the calculation. For example, the arithmetic mean of 3 and 5 is (3+5)/2 = 4, or equivalently [(1/2) × 3] + [(1/2)× 5] = 4. In contrast, a weighted mean in which the first number receives twice as much weight as the second (perhaps because it is assumed to appear twice as often in the general population from which these numbers were sampled) would be calculated as [(2/3) × 3] + [(1/3) × 5] = 11/3. Here the weights, which necessarily sum to the value one, are (2/3) and (1/3), the former being twice the latter. Note that the arithmetic mean (sometimes called the "unweighted average" or "equally weighted average") can be interpreted as a special case of a weighted average in which all the weights are equal to each other (equal to 1/2 in the above example, and equal to 1/n in a situation with n numbers being averaged).

Continuous probability distributions [edit]

Comparison of mean, median and mode of two log-normal distributions with different skewness.

When a population of numbers, and any sample of data from it, could take on any of a continuous range of numbers, instead of for example just integers, then the probability of a number falling into one range of possible values could differ from the probability of falling into a different range of possible values, even if the lengths of both ranges are the same. In such a case the set of probabilities can be described using a continuous probability distribution. The analog of a weighted average in this context, in which there are an infinitude of possibilities for the precise value of the variable, is called the mean of the probability distribution. The most widely encountered probability distribution is called the normal distribution; it has the property that all measures of its central tendency, including not just the mean but also the aforementioned median and the mode, are equal to each other. This property does not hold however, in the cases of a great many probability distributions, such as the lognormal distribution illustrated here.

Angles [edit]

Particular care must be taken when using cyclic data such as phases or angles. Naïvely taking the arithmetic mean of 1° and 359° yields a result of 180°. This is incorrect for two reasons:

  • Firstly, angle measurements are only defined up to a factor of 360° (or 2π, if measuring in radians). Thus one could as easily call these 1° and −1°, or 1° and 179° – each of which gives a different average.
  • Secondly, in this situation, 0° (equivalently, 360°) is geometrically a better average value: there is lower dispersion about it (the points are both 1° from it, and 179° from 180°, the putative average).

In general application such an oversight will lead to the average value artificially moving towards the middle of the numerical range. A solution to this problem is to use the optimization formulation (viz., define the mean as the central point: the point about which one has the lowest dispersion), and redefine the difference as a modular distance (i.e., the distance on the circle: so the modular distance between 1° and 359° is 2°, not 358°).

See also [edit]

References [edit]

  1. ^ a b Medhi, Jyotiprasad (1992). Statistical Methods: An Introductory Text. New Age International. pp. 53–58. ISBN 9788122404197. 

Further reading [edit]

External links [edit]


Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Arithmetic_mean — Please support Wikipedia.
A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.
72719 videos foundNext > 

Average or Central Tendency: Arithmetic Mean, Median, and Mode

Learn more: http://www.khanacademy.org/video?v=GrynkZB3E7M Average or Central Tendency: Arithmetic Mean, Median, and Mode.

Arithmetic Means

I work through 2 examples of how to find Arithmetic Means. Arithmetic means are missing terms within an arithmetic sequence.

How to find the Arithmetic Mean or Average presented by TeachtopiaTV

A brief tutorial on how to find the Arithmetic Mean (often referred to as the Mean or Average). Go to http://Teachtopia.com for more educational videos.

Arithmetic Mean Problem 1

http://www.greenemath.com/ In this video we look at two examples that demonstrate how to find the arithmetic mean (also known as the average) of a group of n...

Arithmetic Mean

Math Geeks Tutorial: Arithmetic Mean Learn How to find the Arithmetic Mean used in Statistics.

Finding the arithmetic sequence arithmetic means.wmv

Arithmetic Mean for Samples and Populations

statisticslectures.com - where you can find free lectures, videos, and exercises, as well as get your questions answered on our forums!

Research Statistics Calculating Arithmetic Mean by Peeyush Malhotra Gurdaspuria.wmv

Research Statistics - Different methods of calculating Arithmetic Mean such as Short Cut Method, Step Deviation Method by Peeyush Malhotra Gurdaspuria.

Excel Finance Class 97: Using Geometric Mean & Arithmetic Mean to Estimate Future Returns

Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm See how to take past stock value data and then calculate Geometric Mean with Arithm...

Statistical Analysis with Excel: Finding the arithmetic mean

Microsoft® Excel, the powerful spreadsheet application, boasts a robust set of statistical functions.

72719 videos foundNext > 

20 news items

Risk.net

Risk.net
Wed, 22 May 2013 06:34:33 -0700

UBS suggests this could be achieved either by topping and tailing the highest and lowest super-prime offered rate and then calculating an arithmetic mean, or basing it on an average of the credit-adjusted quotes. It notes, however, that the credit ...
 
Korea IT Times (press release)
Mon, 20 May 2013 20:37:47 -0700

Our TP of W120,000 is an arithmetic mean of W119,000 obtained via SOTP based PB ratio and trailing EVPS W128,000. Our TP from SOTP is the sum of operating asset value per share W62,974 and affiliate share value W56,496. *Source: Korea Investment ...

Global Economic Intersection

Global Economic Intersection
Fri, 17 May 2013 07:57:54 -0700

To put today's report into the larger historical context since its beginning in 1978, consumer sentiment is now only 2% below the average reading (arithmetic mean) and 1% below the geometric mean. The current index level is at the 41st percentile of ...
 
The Economist (blog)
Wed, 08 May 2013 06:26:30 -0700

The difference between arithmetic and geometric returns (and so why the arithmetic mean is inappropriate - literally incorrect as a metric in that it falis to correctly predict the return for an average portfolio) was taught to me age 8! Surely ...
 
PayScale Career News
Tue, 07 May 2013 11:52:21 -0700

In my second post, I gave the mathematical definitions of median and arithmetic mean (average). These were pretty useless, like all mathematical definitions, because I did not explain when to use median vs. mean. O.K., time for everyone to cringe ...
 
Seeking Alpha
Sun, 28 Apr 2013 11:44:52 -0700

Here is a close-up of GDP alone with a line to illustrate the 3.2 average (arithmetic mean) for the quarterly series since the 1947, with the latest GDP revisions, this number had been at 3.3 for 14 quarters, but slipped to 3.2 in Q2 of 2012 year. I've ...
 
4-traders (press release)
Fri, 26 Apr 2013 09:00:24 -0700

The purchase price to be paid by the Company for the shares shall be determined on the basis of the arithmetic mean of the daily volume-weighted average prices of Christian Dior's shares during the purchase period (excluding trading days during which a ...
 
MarketWatch (press release)
Sun, 28 Apr 2013 23:30:41 -0700

The first conversion on April 25th of 10 bonds OCA2012-2 into 17,714 new shares was performed at a conversion rate of EUR5.64, issue premium included, equivalent to 95% of the arithmetic mean of the volume-weighted average GENFIT share price for the ...
Loading

Oops, we seem to be having trouble contacting Twitter

Talk About Arithmetic mean

You can talk about Arithmetic mean with people all over the world in our discussions.

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!