Arithmetic mean, Applied Statistics

Arithmetic Mean 

The process of computing Arithmetic Mean in the case of individual observations is to take the sum of the values of the variable and then divide by the number of such values. It is denoted by337_arithmetic mean.png and the formula is

750_arithmetic mean1.png

where n is the number of observations and the variable X takes the values X1, X2, ... Xn.

In statistics the collection of all the elements under study is called a POPULATION whereas a collection of some (but not all) of the elements under study is called a sample. It is necessary to distinguish whether we are considering a population or a sample because certain formulas, like those for computing standard deviation (explained later) of a population are different from those for computing the standard deviation of a sample. Hence population mean is denoted by

2339_arithmetic mean2.png

      and sample mean is denoted by

1988_arithmetic mean3.png

Example 1

The following table gives the annual profits of 10 financial services companies for the year 20x1-x2. 

Companies

Net Profit (Rs. crore)


Ashok Leyland Finance

9.19

Classic Finance

4.27

Empire Finance

1.74

First Leasing Company

5.71

Lloyds Finance

4.80

Nagarjuna Finance

4.01

Reliance Finance

9.22

Sakti Finance

3.00

Sundaram Finance

15.16

Tata Finance

3.93                                          

Now, the arithmetic mean of profits of the financial services industry as represented by the above companies for the year 20x1-x2 can be calculated as follows:

Arithmetic Mean = 700_arithmetic mean4.png

= Rs.6.103 crore.

This single figure of mean profit represents the profits of the group of financial services companies under the industry.

Posted Date: 9/14/2012 1:07:28 AM | Location : United States







Related Discussions:- Arithmetic mean, Assignment Help, Ask Question on Arithmetic mean, Get Answer, Expert's Help, Arithmetic mean Discussions

Write discussion on Arithmetic mean
Your posts are moderated
Related Questions
Level of Significance: α The main purpose of hypothesis testing is not to question the computed value of the sample statistic, but to make judgment about the difference between

Meaning and Definitions of Business Forecasting The problem of business  forecasting  refers to the  analysis  of the past and  present economic  conditions. With  the objectiv

Cluster Analysis could be also represented more formally as optimization procedure, which tries to minimize the Residual Sum of Squares objective function: where μ(ωk) - is a centr

The box plot displays the diversity of data for the totexp; the data ranges from 30 being the minimum value and 390 being the maximum value. The box plot is positively skewed at 1.

You want to know the thoughts of air travelers in fields such as tickets, comffort, safety, securuty, services and economic growth. You are given a database and 20 questions to ask

application of chi square test in civil engineering

Agreement The degree to which different observers, raters or diagnostic the tests agree on the binary classification. Measures of agreement like that of the kappa coefficient qu

Examining the Population Variance Business decision making does not limit itself to setting up the hypothesis to test for the equality of more than two means or proportions sim

Where do I Access the gss04student_corrected dataset

Assumptions in ANOVA The various populations from which the samples are drawn should be normal and have the same variance. The requirement of normality can be discarded if t