Mean is a simple mathematical average obtained of two or more numbers. The mean of a given few numbers may be obtained in several ways, and it includes determining the arithmetic mean. It uses the summation of the numbers in the set.
Whereas, the geometric mean process includes obtaining the mathematical average of a set of numbers. Nevertheless, all basic methods of obtaining the mean involve obtaining a simple average, and they all produce almost the same result.
Breaking Down Mean
Analysts wanting to determine the path of an organisation’s share value in the last, say thirty days, will add up the closing price of the share at the end of all thirty days in consideration. The total sum will be then divided by the number of days in order to find out the arithmetic mean.
The geometric mean can be determined by obtaining the product of all values put together. The nth root of the product is obtained; here, in this case, the 30th root will be used to obtain the mean.
Mean, Median, and Mode
Mean, median, and mode are the three forms of average. There are several other forms of average but mean, median, and mode are the three most commonly used forms of average.
The mean is the average that most of us have come across, and under this one would add up all numbers in consideration, and it is then divided by the total numbers considered.
The median is the middle value of all the numbers in the consideration. In this, one would list the numbers in consideration from smallest to largest.
The mode is the number that repeats the most number of times in a given set of numbers. If there is no number that has been mentioned twice, then there is no mode in the given set.