Pros and Cons of Arithmetic Mean

Pros:

  • It is rigidly defined
  • It is easy to calculate and simple to follow
  • It is based on all the observations
  • It is determined for almost every kind of data
  • It is finite and not indefinite
  • It is readily used in algebraic treatment
  • It is least affected by fluctuations of sampling

Cons:

  • The arithmetic mean is highly affected by extreme values
  • It cannot average the ratios and percentages properly
  • It is not an appropriate average for highly skewed distributions
  • It cannot be computed accurately if any item is missing
  • The mean sometimes does not coincide with any of the observed values