EDUCBA Logo

EDUCBA

MENUMENU
  • Explore
    • EDUCBA Pro
    • PRO Bundles
    • All Courses
    • All Specializations
  • Blog
  • Enterprise
  • Free Courses
  • All Courses
  • All Specializations
  • Log in
  • Sign Up
Home Finance Finance Resources Finance Formula Arithmetic Mean Formula
 

Arithmetic Mean Formula

Madhuri Thakur
Article byMadhuri Thakur

Updated July 26, 2023

Arithmetic Mean Formula

 

 

Arithmetic Mean Formula (Table of Contents)
  • Formula
  • Examples
  • Calculator

What is the Arithmetic Mean Formula?

The term “arithmetic mean” basically refers to the mathematical average of two or more numbers. However, the method to calculate the arithmetic mean can vary based on the frequency of each variable in the data set – simple average (equally weighted) or weighted average.

The formula for the arithmetic mean for equally weighted variables can be derived by summing up all the variables in the data set and then divide the result by the number of variables. Mathematically, it is represented as,

Watch our Demo Courses and Videos

Valuation, Hadoop, Excel, Mobile Apps, Web Development & many more.

Arithmetic Mean = (x1 + x2 + …. + xn) / n

or

Arithmetic Mean =∑ xi / n

Where,

  • xi = ith variable
  • n = Number of Variables in the data set

In case of unequally weighted variables, the formula for the arithmetic mean can be derived by summing up the products of each variable and its frequency and then the result is divided by the sum of the frequencies. Mathematically, it is represented as,

Arithmetic Mean = (f1*x1 +f2*x2 + …. + fn*xn) / (f1 + f2 + ….. + fn)

or

Arithmetic Mean = ∑ (fi * xi) / fi

Where

  • xi = ith variable
  • fi = Frequency of the ith variable

Examples of Arithmetic Mean Formula (With Excel Template)

Let’s take an example to understand the calculation of Arithmetic Mean in a better manner.

You can download this Arithmetic Mean Formula Excel Template here – Arithmetic Mean Formula Excel Template

Arithmetic Mean Formula – Example #1

Let us take an example of a batsman who scored the following runs in his last 10 innings during last one year: 45, 65, 7, 10, 43, 35, 25, 17, 78, 91. Calculate the batsman’s average in his last 10 innings.

Example of Batsman

Solution:

Arithmetic Mean is calculated using the formula given below

Arithmetic Mean =∑ xi/ n

Arithmetic Mean Formula Example 1-2

  • Arithmetic Mean = (45 + 65 + 7 + 10 + 43 + 35 + 25 + 17 + 78 + 91) / 10
  • Arithmetic Mean = 41.60

Therefore, the batsman’s average remained 41.60 runs per innings in his last 10 innings.

Arithmetic Mean Formula – Example #2

Let us take an example of a class with 45 students. Recently, there was a weekly test conducted for science in which the students were evaluated on the scale of 1 to 10. Based on the following information calculate the average marks in the test.

Example of Class

Solution:

Arithmetic Mean is calculated using the formula given below

Arithmetic Mean = ∑ (fi * xi) / fi

Arithmetic Mean Formula Example 2-2

  • Arithmetic Mean= ((3 * 3) + (4 * 9) + (6 * 18) + (7 * 12) + (9 * 3)) / 45
  • Arithmetic Mean = 264 / 45
  • Arithmetic Mean = 5.87

Therefore, the average score of the class in the science test was 5.87.

Arithmetic Mean Formula – Example #3

Let us take an example of two data sets with two different arithmetic means. The first data set has 10 variables with a mean of 45, while the second data set has 7 variables and a mean of 42. Determine the arithmetic mean of the two data sets combined.

Solution:

Arithmetic Mean Formula Example 3-1

Arithmetic Means of the combined data set is calculated using the formula given below

Arithmetic Mean = ((m1*n1) + (m2*n2)) / (n1+n2)

Arithmetic Mean Formula Example 3-2

  • Arithmetic Mean= (45 * 10 + 42 * 7) / (10 + 7)
  • Arithmetic Mean = 43.76

Therefore, the arithmetic means of the combined data set is 43.76.

Explanation

The formula for arithmetic mean can be calculated by using the following steps:

Step 1: Firstly, collect and sort out the variables for which the arithmetic mean has to be calculated. The variables are denoted by xi.

Step 2: Next, determine the number of variables in the data set and it is denoted by n in case of equally weighted variables. Otherwise, figure out the frequency of each variable and they are denoted by fi and the number of variables is the summation of the frequencies.

Step 3: Finally, the formula for the arithmetic mean for equally weighted variables can be derived by adding all the variables and then the result is divided by the number of variables in the data set as shown below.

Arithmetic Mean = ∑ xi/ n

However, in case of weighted average, the formula for the arithmetic mean can be derived by summing up the products of each variable and its frequency and then the result is divided by the sum of the frequencies as shown below.

Arithmetic Mean = ∑ fi * xi / fi

Relevance and Uses of Arithmetic Mean Formula

The concept of arithmetic mean is very simple and elementary. But it is still very important as it is often used as a statistical indicator to assess the average outcome in a data set. In fact, it allows evaluating which of the variables are better or lower than the average of the group. It is also used as a measure to represent the average value across the entire data series. Further, arithmetic mean is used in cases where geometric mean or harmonic means are less useful, such as average grade, weight, etc.

Arithmetic Mean Formula Calculator

You can use the following Arithmetic Mean Calculator

x1
x2
x3
x4
n
Arithmetic Mean
 

Arithmetic Mean =
x1 + x2 + x3 + x4 =
n
0 + 0 + 0 + 0 = 0
0

Recommended Articles

This is a guide to Arithmetic Mean Formula. Here we discuss How to Calculate Arithmetic Mean along with practical examples. We also provide an Arithmetic Mean Calculator with downloadable excel template. You may also look at the following articles to learn more –

  1. How to calculate Harmonic Mean?
  2. Guide to Population Mean Formula
  3. Calculation of Mean using Formula
  4. Examples of Net Sales Formula
Primary Sidebar
Footer
Follow us!
  • EDUCBA FacebookEDUCBA TwitterEDUCBA LinkedINEDUCBA Instagram
  • EDUCBA YoutubeEDUCBA CourseraEDUCBA Udemy
APPS
EDUCBA Android AppEDUCBA iOS App
Blog
  • Blog
  • Free Tutorials
  • About us
  • Contact us
  • Log in
Courses
  • Enterprise Solutions
  • Free Courses
  • Explore Programs
  • All Courses
  • All in One Bundles
  • Sign up
Email
  • [email protected]

ISO 10004:2018 & ISO 9001:2015 Certified

© 2025 - EDUCBA. ALL RIGHTS RESERVED. THE CERTIFICATION NAMES ARE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS.

EDUCBA

*Please provide your correct email id. Login details for this Free course will be emailed to you
EDUCBA

*Please provide your correct email id. Login details for this Free course will be emailed to you
EDUCBA

*Please provide your correct email id. Login details for this Free course will be emailed to you

Loading . . .
Quiz
Question:

Answer:

Quiz Result
Total QuestionsCorrect AnswersWrong AnswersPercentage

Explore 1000+ varieties of Mock tests View more

EDUCBA
Free Investment Banking Course

Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

By continuing above step, you agree to our Terms of Use and Privacy Policy.
*Please provide your correct email id. Login details for this Free course will be emailed to you
EDUCBA

Download Arithmetic Mean Formula Excel Template

EDUCBA Login

Forgot Password?

EDUCBA

डाउनलोड Arithmetic Mean Formula Excel Template

🚀 Limited Time Offer! - 🎁 ENROLL NOW