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What is meant by Arithmetic Mean ? What are its merits and demerits ?

OR

Calculate Arithmetic mean of the following :

XY
10–204
20–307
30–4016
40–5020
50–6015
60–708
Jammu Kashmir JkboseJKBOSE Class 11 (Commerce) 2022Subjective· 6mImportance★★★★★est
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Arithmetic Mean = Sum(x)/N; it has clear merits (simplicity, uses all data) and demerits (sensitivity to extreme values). The alternative problem computes AM ~ 43.43 by the step-deviation method.

What is Arithmetic Mean? Merits and demerits:

Arithmetic Mean (A.M.) is the most common mathematical average, defined as the sum of all the values in a series divided by the number of values:

A.M. (x-bar) = Sum(x) / N

For grouped/frequency data: x-bar = Sum(f*x) / Sum(f)

Merits of Arithmetic Mean:

  1. Simple to understand and easy to calculate.
  2. Rigidly/precisely defined by a mathematical formula - no ambiguity.
  3. Based on all the observations in the series.
  4. Capable of further algebraic/statistical treatment (e.g. combined mean of two groups can be computed).
  5. Least affected by sampling fluctuations compared to some other measures.

Demerits of Arithmetic Mean:

  1. Unduly affected by extreme (very large or very small) values/outliers.
  2. Cannot be calculated for open-ended class intervals without assumptions, or for qualitative (non-numeric) data.
  3. It may give a value that does not actually exist in the data (e.g. an average family size of 4.4 children).
  4. Cannot be located graphically (unlike median or mode).
  5. In a highly skewed distribution, the mean may not be a good representative value. …

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