Give merits and demerits of arithmetic mean.

Give merits and demerits of arithmetic mean.
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1 Answer

Answer :

Merits:
 It is rigidly defined.
 It is easy to calculate and simple to follow.
 It is based on all the observations.
 It is determined for almost every kind of data.
 It is finite and not indefinite.
 It is readily put to algebraic treatment.
 It is least affected by fluctuations of sampling.
Demerits:
 The arithmetic mean is highly affected by extreme values.
 It cannot average the ratios and percentages properly.
 It is not an appropriate average for highly skewed distributions.
 It cannot be computed accurately if any item is missing.
 The mean sometimes does not coincide with any of the observed value.
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