DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name of the Staff Member : S.PADMA
Designation : Lecturer
Branch : C.C.P
Institute : S.G.M.GPT, Abdullahpurmet
Year/Semester : III Sem
Subject : Quantitative Techniques-I
Subject Code : CCP-303
Topic : ARITHMETIC MEAN
Sub-Topic : MEANING, MERITS AND
DEMERITS
Presentation Duration : 50 Minutes
Teaching Aids used : PPT, Animations

CCP-303.16 1
Objectives
On completion of this period, you would be
able to:

 Define Arithmetic Mean

 Explain Merits and Demerits of Arithmetic Mean

CCP-303.16 2
 What is Arithmetic Mean ?

CCP-303.16 3
 Look at the following examples

CCP-303.16 4
 Heights of
children

CCP-303.16 5
 Monthly incomes of the five persons are
given below:

Ramesh - Rs. 25,000

Somesh - Rs. 20,000
Rajesh - Rs. 26,000
Mahesh - Rs. 24,000
Lokesh - Rs. 27,500

CCP-303.16 6
 The weights of the five students are :

 Rakesh - 92 kgs

 Raghu - 46 kgs

 Sameer - 68 kgs

 Pavan - 55 kgs

 Mithun - 34 kgs

CCP-303.16 7
 Marks of 10 students in Statistics out of
100 are:

48, 61, 76, 89, 36, 54, 96, 68, 20, 52

CCP-303.16 8
What is the single value that
describes the entire group?

 Average height of children

 Average income of five persons
 Average weight of five students
 Average Mark of ten students in statistics

CCP-303.16 9
 Average means:

 A single value
 representing
 set of observations
 which lies centrally

CCP-303.16 10
Types of Averages

 Arithmetic Mean
 Median
 Mode
 Geometric Mean
 Harmonic Mean

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 Arithmetic Mean

 Represents entire data by one value

 Centrally located

 Designated by the symbol X, (read ‘X-bar’)

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 TYPES OF A.M.

(Simple) Arithmetic Mean Weighted Arithmetic Mean

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(Simple) Arithmetic Mean - Features

 Gives equal importance to all items

 Easy to calculate
 A very popular method

CCP-303.16 14
Weighted Arithmetic Mean – Features:

 Gives relative importance to different items

CCP-303.16 15
 Formula
Arithmetic Mean :

Sum of all observations

Total Number of observations
or
∑X
N
Where ∑X = sum of all the observations
N = total number of observations

CCP-303.16 16
 Example 1:

Marks of 10 students in statistics out of 100 are:

48, 61, 76, 89, 36, 54, 96, 68, 20, 52
A.M. = 48+61+76+89+36+54+96+68+20+52
10
= 600/10
= 60
Average Mark = 60

CCP-303.16 17
Merits - Arithmetic Mean
 Rigidly defined
 Easy to calculate and understand
 Based on all the observations
 A good representative
 Useful for comparison
 Suitable for algebraic treatment (eg. combined
arithmetic mean)
 Affected much by sampling fluctuations

CCP-303.16 18
Demerits - Arithmetic Mean
 Affected by extreme values
 Ex: Four students got the marks 0, 10, 100 and 6 and
their average is 36. (Marks 0 and 100 have reduced the
average considerably)
 Value NOT present in given data. Many times gives
absurd results like 4.4 children per family.
 Not possible to calculate averages of ratios and
percentages
 Cannot be calculated when open-end class intervals are
present in the data

CCP-303.16 19
Summary

 A.M is most popular and widely used measure

representing the entire data and centrally
located value

 Arithmetic Mean = ∑X/N

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Quiz

1. What is an Arithmetic Mean?

a) Highest value
b) Lowest value
c) Central value
d) None

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 2. Is Arithmetic Mean always a good
measure?
a) Yes
b) No

3. Does Arithmetic Mean gives importance

to all the observations?
a) Yes
b) No

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 4. The A.M. of a+2, a and a-2 is
a) a+2
b) a
c) a-2
d) 3a

CCP-303.16 23
 Frequently Asked Questions:
1. What is meant by Arithmetic mean?
2. What are the different types of Averages?
3. Mention the merits and demerits of Arithmetic
Mean.

CCP-303.16 24