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