Arithmetic Mean Definition. The arithmetic mean is the summation of all the observations or values of a data set divided by the number of observations or values. The arithmetic mean of a set of data is found by taking the sum of the data and then dividing the sum by the total number of values in the set.
A value that is computed by dividing the sum of a set of terms by the number of terms. In the world of finance the arithmetic mean is not usually an appropriate. In the problem above the mean was a whole number.
For example if there are three test scores 70 83 and 90 the arithmetic mean of the scores is their sum 243 divided by the number of scores 3 or 81.
In the problem above the mean was a whole number. Arithmetic mean X1 X2 X3. Arithmetic mean ărĭth-mĕt ĭk The value obtained by dividing the sum of a set of quantities by the number of quantities in the set. A treatise on arithmetic.
