Economics

$AM$ of $X$ = $Xˉ$ = $A$ $+$ $n∑u ×c$

$x$: Indicates values of the variable $X$.

$n$: Indicates number of values of $X$.

A:Indicates assumed mean.

$u=cxA $ or $hx−A $

$u$: Step-deviation and $c$: Indicates common divisor

$h$: Indicates size of class or class interval in case of grouped data.

$∑$: Summation or addition.

- It should be rigidly defined. If an average is left to the estimation of an observer and if it is not a definite and fixed value it cannot be representative of a series.
- It should be based on all the observations of the series. If some of the items of the series are not taken into account in its Calculation the average cannot be said to be a representative one.
- It should be capable of further algebraic treatment. If an average dose not possess this quality, its use is bound to be very limited.
- It should be easy to calculate and simple to follow.

- It should not be affected by fluctuations of sampling.

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