Arithmetic mean

In mathematics and statistics, the arithmetic mean of a set of numbers is the sum of all the members of the set divided by the number of items in the set. (The word set is used perhaps somewhat loosely; for example, the number 3.8 could occur more than once in such a "set".) The arithmetic mean is what pupils are taught very early to call the "average." If the set is a statistical population, then we speak of the population mean. If the set is a statistical sample, we call the resulting statistic a sample mean.

Related Topics:
Mathematics - Statistics - Mean - Average - Statistical population - Statistical sample - Statistic

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The mean may be conceived of as an estimate of the median. When the mean is not an accurate estimate of the median, the set of numbers, or frequency distribution, is said to be skewed.

Related Topics:
Median - Frequency distribution - Skewed

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We denote the set of data by X = { x1, x2, ..., xn}. The symbol μ (Greek: mu) is used to denote the arithmetic mean of a population. We use the name of the variable, X, with a horizontal bar over it as the symbol ("X bar") for a sample mean. Both are computed in the same way:

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:ar{x}={ m arithmetic mean}=(x_1+cdots+x_n)/n.

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The arithmetic mean is greatly influenced by outliers. For instance, reporting the "average" net worth in Redmond, Washington as the arithmetic mean of all annual net worths would yield a surprisingly high number because of Bill Gates. These distortions occur when the mean is different from the median, and the median is a superior alternative when that happens.

Related Topics:
Outlier - Net worth - Redmond, Washington - Bill Gates

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In certain situations, the arithmetic mean is the wrong concept of "average" altogether. For example, if a stock rose 10% in the first year, 30% in the second year and fell 10% in the third year, then it would be incorrect to report its "average" increase per year over this three year period as the arithmetic mean (10% + 30% + (−10%))/3 = 10%; the correct average in this case is the geometric mean which yields an average increase per year of only 8.8%.

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If X is a random variable, then the expected value of X can be seen as the long-term arithmetic mean that occurs on repeated measurements of X. This is the content of the law of large numbers. As a result, the sample mean is used to estimate unknown expected values.

Related Topics:
Random variable - Expected value - Law of large numbers

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Note that several other "means" have been defined, including the generalized mean, the generalized f-mean, the harmonic mean, the arithmetic-geometric mean, and the weighted mean.

Related Topics:
Generalized mean - Generalized f-mean - Harmonic mean - Arithmetic-geometric mean - Weighted mean

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