Arithmetic Mean

It is the most commonly used average or measure of the central tendency applicable only in case of quantitative data. Arithmetic mean is also simply called “mean”. Arithmetic mean is defined as:

Arithmetic mean is quotient of sum of the given values and number of the given values”.

The arithmetic mean can be computed for both ungroup data (raw data: a data without any statistical treatment) and grouped data (a data arranged in tabular form containing different groups).

If X is the involved variable, then arithmetic mean of X is abbreviated as A.M of X and denoted by \overline X . The arithmetic mean of X can be computed by any of the following methods.

Method’s Name

Nature of Data

Ungrouped Data

Grouped Data

Direct Method

A.M{\text{ of }}X = \overline X = \frac{{\sum x}}{n}

A.M{\text{ of }}X = \overline X = \frac{{\sum fx}}{{\sum f}}

Indirect or
Short-Cut Method

A.M{\text{ of }}X = \overline X = A + \frac{{\sum D}}{n}

A.M{\text{ of }}X = \overline X = A + \frac{{\sum fD}}{{\sum f}}

Method of
Step-Deviation

A.M{\text{ of }}X = \overline X = A + \frac{{\sum u}}{n} \times c

A.M{\text{ of }}X = \overline X = A + \frac{{\sum fu}}{{\sum f}} \times h

 
Where
            x: Indicates values of the variable X.
            n: Indicates number of values of X.
            f: Indicates frequency of different groups.
            A:Indicates assumed mean.
            D: Indicates deviation from A i.e, D = (x - A)
            u = \frac{{x - A}}{{c{\text{ or }}h}}
            u: Step-deviation and c: Indicates common divisor
            h: Indicates size of class or class interval in case of grouped data.
            \sum : Summation or addition.

Example (1):
The one-sided train fare of five selected BS students is recorded as follows (\$ ){\text{ :}} 10, 5, 15, 8 and 12. Calculate arithmetic mean of the following data.
Solution:

Let train fare is indicated by x, then

x{\text{ }}(\$ )

10

5

15

8

12

\sum x = 50

 

Arithmetic mean of X = \overline X = \frac{{\sum x}}{n}, we decide to use above-mentioned formula. Form the given data, we have \sum x = 50 and n = 5. Placing these two quantities in above formula, we get the arithmetic mean for given data.
                      

\overline X = \frac{{50}}{5} =  \$ 10

Example (2):

Given the following frequency distribution of first year students of a particular college.

Age (Years)

13

14

15

16

17

Number of Students

2

5

13

7

3

Solution:

The given distribution belongs to a grouped data and the variable involved is ages of first year students. While the number of students Represent frequencies.

Ages (Years)
x

Number of Students
f

fx

13

2

26

14

5

70

15

13

195

16

7

112

17

3

51

Total

\sum f = 30

\sum fx = 454

Now we will find the Arithmetic Mean as \overline X = \frac{{\sum  fx}}{{\sum f}} = \frac{{454}}{{30}} = 15.13 years.

Example (3):

The following data shows distance covered by 100 persons to perform their routine jobs.

Distance (Km)

0 - 10

10 - 20

20 - 30

30 - 40

Number of Persons

10

20

40

30

Solution:

The given distribution belongs to a grouped data and the variable involved is ages of “distance covered”. While the “number of persons” Represent frequencies.

Distance (Km)

Number of Persons
f

Mid Points
x

fx

0 - 10

10

5

50

10 - 20

20

15

300

20 - 30

40

25

1000

30 - 40

30

35

1050

Total

\sum f = 100

 

\sum fx = 2400

Now we will find the Arithmetic Mean as \overline X = \frac{{\sum  fx}}{{\sum f}} = \frac{{2400}}{{100}} = 24 Km.

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