Main advantages and disadvantages of arithmetic mean can be highlighted as follows:
Advantages/Merits Of Arithmetic Mean
1. Simplicity
Arithmetic mean is most widely applied measure because it can be calculated very easily and can be understood without any complication.
2. Rigid Formula
The value of arithmetic mean is always fixed as it is defined by rigid formula.
3. Helps Further Study
Arithmetic mean can be used for further study especially for algebraic calculation and statistical analysis.
4. Minimum Fluctuation
Arithmetic mean is less affected by fluctuation in sampling.
2. AM is too much affected by extreme values of the series.
5. No Need Of Data Arrangement
Arithmetic mean does not require the arrangement of data and dividing of data like other measures of central tendencies (i.e median and mode).
6. Based On Observation
Arithmetic mean is completely based on observation, So, it represents the data not the position of terms.
Also Read:
Also Read:
Disadvantages/Demerits Of Arithmetic Mean
1. Arithmetic mean cannot be determined if any item of observation is missing.
3. AM is not applicable for qualitative data.
4. In case of open end class intervals, arithmetic mean cannot be calculated.
Pros And Cons Of Arithmetic Mean In Short
Pros:
- It is easy to determine and simple to understand
- Its value is always fixed
- It is useful for algebraic and statistical analysis
- Arrangement of data is not required
Cons:
- It is not useful for open end class intervals
- It is influenced by extreme values in the series
- It cannot be determined for qualitative data
