Business and Personal Finance Dictionary

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• MEAN
  
  Is often considered as the simple arithmetic average of the sum of the observed values divided by the number of observations. The simple unweighted mean of the listed four observations: 8,12, 10 and 14 is 11. This statistic is computed by (8+12+10+14=44) 44 divided by 4. The geometric mean of the same four observations is 10.77. It is computed by multiplying each observed value and then deriving the nth root of that number. The geometric mean can only be equal to or less than the comparable arithmetic mean.
  
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