Explain the Characteristics, Merits and Demerits of Arithmetic Mean.

Arithmetic average or mean of series of items is obtained by adding values of the items and dividing 1 by the number of items.

Symbolically,

$\bar { X } =\frac { \Sigma X }{ N } $

The characteristics of Arithmetic Mean :

(i) Easy to compute: The calculation of arithmetic mean is very simple and easy

(ii) Easy to understand : It is very easy to understand even common man can understand it easily.

(iii) Least affected by fluctuations : Its main feature is that it is hardly affected by the changes.

(iv) Based on all the items of series : It is based on all items of series which helps in getting the proper j picture of whole data.

Merits of Arithmetic Mean :

(i) To present a brief picture of data : The main purpose of average is to present a simple and systematic description of the data.

(ii) To represent the universe : It also helps to obtain a picture of a complete group.

(iii) Basis of statistical analysis : It is the basis of statistical analysis and analyze the data.

(iv) To facilitate comparison : It helps in comparing the data of various categories.

Demerits of Arithmetic Mean :

(i) The arithmetic mean is highly affected by extreme values.

(ii) It cannot average the ratios and percentages properly.

(iii) It is not an appropriate average for highly skewed distributions.

(iv) It cannot be computed accurately if any item is missing.