Merits:

• It is based on all observations.
• It not much affected by the fluctuation of sampling.
• It is capable of algebraic treatment.
• It is an appropriate average for averaging ratios and rates.
• It does not give much weight to the large items.

Demerits:

• Its calculation is difficult.
• It gives high weight-age to the small items.
• It cannot be calculated if any one of the items is zero.
• It is usually a value which does not exist in the given data.