The arithmetic mean, commonly known as the average, is calculated by summing individual quantities and dividing by their total number. This measure is frequently used in various fields, although it can be misleading in the presence of outliers.
The term 'average' commonly refers to the arithmetic mean, which is a measure of central tendency. In finance, it refers to an appropriately weighted and adjusted arithmetic mean of selected securities designed to represent market behavior.
The Arithmetic Mean is a statistic calculated as the sum of all values in the sample divided by the number of observations. It is a fundamental measure of central tendency used in statistical analysis.
