Definition of 'Arithmetic Mean'

A mathematical representation of the typical value of a series of numbers, computed as the sum
of all the numbers in the series divided by the count of all numbers in the series. It is commonly
referred to as "average" or simply as "mean".

Properties of Arithmetic Mean

1. The sum of the deviations, of all the values of x, from their arithmetic mean, is zero.
2. The product of the arithmetic mean and the number of items gives the total of all items.

Merits of arithmetic mean

1.) It is rigidly defined.

2.) It is based on all the values.
3.) It is more stable than any other average.

Demerits of arithmetic mean

1.) It is highly affected by abnormal values.

2.) The loss of even a single observation makes it impossible to compute the arithmetic
mean correctly.