Definitions
The most commonly used definition of the average is the arithmetic mean, also known as "arithmetic average" i.e. the sum divided by the count, so the "average" of the list of numbers [2, 3, 4, 7, 9] is generally considered to be (2+3+4+7+9)/5 = 25/5 = 5. The arithmetic mean of a set of numbers x1, x2, ..., xn is typically denoted using an overhead bar,
x
¯
{\displaystyle {\bar {x}}}
. If the numbers are from observing a sample of a larger group, the arithmetic mean is termed the sample mean (
x
¯
{\displaystyle {\bar {x}}}
) to distinguish it from the group mean (or expected value) of the underlying distribution, denoted
μ
{\displaystyle \mu }
or
μ
x
{\displaystyle \mu _{x}}
.
However, other meanings are sometimes used depending on the context, which can lead to confusion; for instance, in teaching, "average" sometimes refers to "the three Ms": mean, median, and mode.
The median, defined as the value in the center after sorting the group, is usually used as the average in situations where the data is skewed or has outliers, in order to focus on the main part of the group rather than the long tail. For example, the average personal income is usually given as the median income, so that it represents the majority of the population rather than being overly influenced by the much higher incomes of the few rich people.
The harmonic mean, defined as the reciprocal of the mean of the reciprocals, is used in a variety of situations involving rates or ratios, such as computing the average speed from multiple measurements taken over the same distance. Indeed, unlike an arithmetic mean or median of speeds, a harmonic mean of speeds will give the value of the constant speed that would cause one to travel the same distance in the same amount of time.
The mode represents the most common value found in the group. It can be used when the data is categorical rather than numeric, when the frequency of each value is relevant (such as where a histogram, bar chart, or probability density function is being referenced), or to find a value that represents the majority of the group.
Other statistics that can be used as an average include the mid-range, the quadratic mean or the geometric mean, but they are rarely referred to as "the average".