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The population mean is the average for a finite population. It is unique; a given population has only one mean.
The sample mean is the average for a sample. It is a statistic and is used to estimate the population mean.
where n = the number of observations in the sample
The arithmetic mean is what is commonly called the average. The population mean and sample mean are both examples of the arithmetic mean.
This is the most widely used measure of central tendency. When the word "mean" is used without a modifier, it can be assumed to refer to the arithmetic mean. The mean is the sum of all scores divided by the number of scores. It is used to measure the prospective (expected future) performance (return) of an investment over a number of periods.
The arithmetic mean has the following disadvantages:
The geometric mean has three important properties:
It is typically used when calculating returns over multiple periods. It is a better measure of the compound growth rate of an investment. When returns are variable by period, the geometric mean will always be less than the arithmetic mean. The more dispersed the rates of returns, the greater the difference between the two. This measurement is not as highly influenced by extreme values as the arithmetic mean.
The weighted mean is computed by wei...
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