Tutorial Merits and Demerits of Arithmetic Mean


Merits and Demerits of Arithmetic Mean


   


Merits:

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

Demerits:

  • The arithmetic mean is highly affected by extreme values.
  • It cannot average the ratios and precentages properly.
  • It is not an approprite 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 abserved value.

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