Demerits and merits of the measures of central tendency The arithmetic mean or a.m Merits i.  It employs all the observations given ii. This is a very useful statistic in terms of applications. This has some applications in business management for illustration as: hypothesis testing, quality control and so on. iii. This is the best representative of a described set of data if such data was acquired from a normal population iv. The arithmetic mean can be determined accurately by using mathematical formulas Demerits i. If the data is not drawn from a 'general population, then the arithmetic mean may provide a wrong impression about the population ii. In some situations, the arithmetic mean may provide unrealistic values especially when dealing along with discrete variables for illustration as: when working out the average no. of children in a number of families. This may be found that the average is 4.4 which is un-realistic in human beings   Posted Date: 2/16/2013 6:28:24 AM | Location : United States

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