Arithmetic Mean

The arithmetic mean, often simply called the mean or average, is calculated by adding up all the numbers in a dataset and dividing the total by the number of values. For example, the mean of 2, 4, and 6 is (2 + 4 + 6) / 3 = 4. It is the most common measure of central tendency. However, it can be heavily influenced by outliers (extremely high or low values). In such cases, the median (the middle value) might be a better representation. The geometric mean, which multiplies values and takes the nth root, is preferred for growth rates.