Investor Glossary-arithmetic meanInvestor Glossary-arithmetic meanInvestor Glossary-arithmetic meanInvestor Glossary-arithmetic meanInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Arithmetic Mean

The HTML to link to this page
 

The arithmetic mean of a set of two or more values is the sum of all the values divided by the number of values. In mathematics and statistics the arithmetic mean is one type of average, or measure of central tendency, but school children are taught to call the arithmetic mean "the average." Because the arithmetic mean is a fundamental measure, it has application in numerous business contexts. Accordingly, the average usually means the arithmetic mean, and an arithmetic mean is generally called an average. For instance, in real estate one key measure of the state of the market is the average number of days on the market for properties for sale. Although this measure would be technically described as the "arithmetic mean of number of days on the market," average days on the market is both simpler to say and widely understood. The term arithmetic mean is infrequently used in place of average, except where technical precision is required.



Rate this arithmetic mean definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: ex-dividend, debt service coverage, required rate of return, annual return, FTSE, margin rate, 1035 exchange, Key Rate Duration, FICO score, inflation, quality assurance, option premium, 1031 exchange, current ratio, minority interest, wholly-owned subsidiary, average price per share, phantom income, VIX, EBITDA, in escrow, risk management, diluted share, deferred tax, ex-dividend date, reverse mortgage, deferred revenue, cancelled check, real GDP, per diem, command economy, stock split, stock market close, Zero Cost Collar, dividends payable, class C shares, retained earnings, balance sheet, labor relations, liquidity ratio, APR, 144a, open position, covered put, implied volatility, limit order, 401a, LIBOR, irrevocable trust


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use