Numbers and measures
Mean
The sum of the values divided by how many values there are.
- Numbers and measures
Definition
The sum of the values divided by how many values there are. A few very large or very small values can pull the mean a long way.
Also called
Average, Arithmetic mean
Example
Raket Parts' customers take 47 days to pay on average. A few very late accounts can pull that mean up. The median shows what a typical customer does.
Raket Parts B.V. is a fictional company created for Insyt.
See how it works
Mean of all five = 58; median = 30.
Check your understanding
Common mistake: An extreme observation can pull the mean away from what most people experience.
Can the mean rise when most observations are unchanged?
Show explanation
Yes. One much larger value can increase it.
For your role
Choose your role to see what this term means in your work.
Why it matters
It is the most common summary of data, but extreme values can distort it.
Where it is used
Statistical reports and performance summaries.
How to calculate it
Sum of all values ÷ number of values
Worked example
Scores of 4, 6 and 8 add up to 18, and 18 ÷ 3 gives a mean of 6.