Merits and demerits of arithmetic mean
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Gaurav Seth 4 years, 11 months ago
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.
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