- 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
- 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.