arithmetic mean
Noun
Meaning
the sum of the values of a random variable divided by the number of values
Source: WordNetSynonyms
Antonyms
Hypernyms
Examples
Examples In calculating the arithmetic mean of a sample, for example, the algorithm works by summing all the data values observed in the sample and then dividing this sum by the number of data items.
An easy way to do this is to choose a number n and create a new series by taking the arithmetic mean of the first n values, then moving forward one place and so on.
Calculating the average (or arithmetic mean) of the return of a security over a given period will generate the expected return of the asset.
Contrast with median The arithmetic mean may be contrasted with the median.
For the arithmetic mean, the speed of each portion of the trip is weighted by the duration of that portion, while for the harmonic mean, the corresponding weight is the distance.
History Origin The first recorded time that the arithmetic mean was extended from 2 to n cases for the use of estimation was in the sixteenth century.