Types of Averages
Mean: Sum of all values ÷ Count
Median: Middle value when sorted (average of two middle if even count)
Mode: Most frequently occurring value(s)
Geometric Mean: Nth root of the product of N values
When to Use Each
- Mean: Best for symmetric data without outliers (e.g., test scores)
- Median: Better when data has outliers (e.g., income, house prices)
- Mode: Best for categorical data or finding the most common value
- Geometric Mean: Best for rates, ratios, and percentages (e.g., investment returns)
Frequently Asked Questions
What's the difference between mean and average? They're the same thing. "Average" in everyday language refers to the arithmetic mean.
Why is median often better than mean? The median is resistant to outliers. A few extreme values can skew the mean but won't affect the median.