What is Mean? ... Mean is an essential concept in mathematics and statistics. The mean is the average or the most common value in a collection of numbers. In ...MeanTheaverageorthemostcommonvalueinacollectionofnumbersHome›Resources›Knowledge›Other›MeanWhatisMean?Meanisanessentialconceptinmathematicsandstatistics.Themeanistheaverageorthemostcommonvalueinacollectionofnumbers.Instatistics,itisameasureofcentraltendencyofaprobabilitydistributionalongmedianandmode.Itisalsoreferredtoasanexpectedvalue.Itisastatisticalconceptthatcarriesamajorsignificanceinfinance.FinanceCFI'sFinanceArticlesaredesignedasself-studyguidestolearnimportantfinanceconceptsonlineatyourownpace.Browsehundredsofarticles!Theconceptisusedinvariousfinancialfields,includingbutnotlimitedtoportfoliomanagementPrivateWealthManagementPrivatewealthmanagementisaninvestmentpracticethatinvolvesfinancialplanning,taxmanagement,assetprotectionandotherfinancialservicesforhighnetworthindividuals(HNWI)oraccreditedinvestors.Privatewealthmanagerscreateacloseworkingrelationshipwithwealthyclientstohelpbuildaportfoliothatachievestheclient’sfinancialgoals.andbusinessvaluationBusinessValuationGlossaryThisbusinessvaluationglossarycoversthemostimportantconceptstoknowinvaluingacompany.ThisguideispartofCFI'sBusinessValuationModeling.  LearnmoreaboutothermathematicalconceptswithCFI’sMathforCorporateFinanceCourse. Howtocalculatemean?Therearedifferentwaysofmeasuringthecentraltendencyofasetofvalues.Therearemultiplewaystocalculatethemean.Herearethetwomostpopularones: Arithmeticmeanisthetotalofthesumofallvaluesinacollectionofnumbersdividedbythenumberofnumbersinacollection.Itiscalculatedinthefollowingway:  Infinance,thearithmeticmeanmaybemisleadinginthecalculationsofreturns,asitdoesnotconsidertheeffectsofvolatilityandcompounding,producinganinflatedvalueforthecentralpointofthedistribution.Geometricmeanisan nthrootoftheproductofallnumbersinacollection.Theformulaforthe geometricmeanGeometricMeanThegeometricmeanistheaveragegrowthofaninvestmen