Arithmetic Mean

Arithmetic mean of a set of observations is defined as sum of the observations divided by the number of observations.

Merits :

1. It is reducently defined.
2. It is easy to calculate and understand.
3. It is based on all the observations.
4. It is suitable for further mathematical treatments.
5. Of all the averages, Arithmetic Mean(A.M) is list affected by fluctuations of sampling.

Demerits :

1. It is very much affected by extreme values.
2. Arithmetic Mean can't be used in the case of open and classes.
3. Arithmetic Mean can't be determined by inspection or it can't be located graphicaly.
4. It can't be used if we are dialing with qualitative data.