Arithmetic Mean 15

metic mean is calculated in the following

Arithmetic Mean
way:
A
The arithmetic mean is a measure of cen- k
xi · fi
tral tendency. It allows us to characterize i=1
the center of the frequency distribution of x̄ = ,
k
a quantitative variable by considering all fi
i=1
of the observations with the same weight
where xi are the different values of the vari-
afforded to each (in contrast to the weighted
able, fi are the frequencies associated with
arithmetic mean).
these values, k is the number of different val-
It is calculated by summing the observations
ues, and the sum of the frequencies equals the
and then dividing by the number of observa-
number of observations:
tions.
k
fi = n .
HISTORY i=1
The arithmetic mean is one of the oldest
To calculate the mean of a frequency distri-
methods used to combine observations in
bution where values of the quantitative vari-
order to give a unique approximate val-
able X are grouped in classes, we consid-
ue. It appears to have been first used by
er that all of the observations belonging
Babylonian astronomers in the third centu-
to a certain class take the central value of
ry BC. The arithmetic mean was used by the
the class, assuming that the observations
astronomers to determine the positions of the
are uniformly distributed inside the classes
sun, the moon and the planets. According to
(if this hypothesis is not correct, the arith-
Plackett (1958), the concept of the arithmetic
metic mean obtained will only be an appro-
mean originated from the Greek astronomer
ximation.)
Hipparchus.
Therefore, in this case we have:
In 1755 Thomas Simpson officially pro-
posed the use of the arithmetic mean in a let- k
xi · fi
ter to the President of the Royal Society. i=1
x̄ = ,
MATHEMATICAL ASPECTS
Let x1 , x2 , . . . , xn be a set of n quantities
or n observations relating to a quantitative
variable X.
The arithmetic mean x̄ of x1 , x2 , . . . , xn is
the sum of these observations divided by the
number n of observations:
k
fi
i=1
where the xi are the class centers, the fi are
the frequencies associated with each class,
and k is the number of classes.
Properties of the Arithmetic Mean
• The algebraic sum of deviations between

n
xi every value of the set and the arithmetic
x̄ =
i=1
. mean of this set equals 0:
n

n
When the observations are ordered in the (xi − x̄) = 0 .
form of a frequency distribution, the arith- i=1
16 Arithmetic Mean

• The sum of square deviations from every • If the xi result from the random sampling
value to a given number “a” is smallest without replacement of a finite population
when “a” is the arithmetic mean: with a mean μ, the identity

n 
n
(xi − a) ≥
2
(xi − x̄)2 . E [x̄] = μ
i=1 i=1

Proof: is still valid, but the variance of x̄ must be

We can write: adjusted by a factor that depends on the
size N of the population and the size n of
xi − a = (xi − x̄) + (x̄ − a) . the sample:

Finding the squares of both members of  

σ2 N−n
the equality, summarizing them and then Var (x̄) = · ,
n N−1
simplifying gives:
where σ 2 is the variance of the population.

n
(xi − a)2
i=1
Relationship Between the Arithmetic Mean

n
= and Other Measures of Central Tendency
(xi − x̄)2 + n · (x̄ − a)2 .
i=1 • The arithmetic mean is related to two prin-
cipal measures of central tendency: the
As n · (x̄ − a)2 is not negative, we have mode Mo and the median Md .
proved that: If the distribution is symmetric and uni-
 n  n modal:
(xi − a)2 ≥ (xi − x̄)2 .
x̄ = Md = Mo .
i=1 i=1

• The arithmetic mean x̄ of a sample If the distribution is unimodal, it is nor-

(x1 , . . . , xn ) is normally considered to
be an estimator of the mean μ of the
population from which the sample was
taken.
• Assuming that xi are independent ran-
dom variables with the same distribution
function for the mean μ and the vari-
ance σ 2 , we can show that
1. E [x̄] = μ,
2. Var (x̄) = σn ,
2
mally true that:
x̄ ≥ Md ≥ Mo if the distribution is
stretched to the right,
x̄ ≤ Md ≤ Mo if the distribution is
stretched to the left.
For a unimodal, slightly asymmetric
distribution, these three measures of the
central tendency often approximately
satisfy the following relation:

if these moments exist. (x̄ − Mo ) = 3 · (x̄ − Md ) .

Since the mathematical expectation of
x̄ equals μ, the arithmetic mean is an esti- • In the same way, for a unimodal distri-
mator without bias of the mean of the pop- bution, if we consider a set of posi-
ulation. tive numbers, the geometric mean G is