Arithmetic mean

Maths.

The arithmetic mean of a set of data is the simple average calculated by adding up all of the values and dividing by the total number of items.

For example, the arithmetic mean of 4%, 5% and 6% is:

= (4% + 5% + 6%) / 3

= 15% / 3

= 5%.

Also sometimes known more simply as the Mean.

Sometimes denoted by 'µ' - the Greek letter mu (or m).

See also

• Composite indices
• Expected cash flow
• Expected value
• Geometric mean