The arithmetic mean is appropriate when all values in the data sample have the same units of measure, e.g. all numbers are heights, or dollars, or miles, etc. When calculating the arithmetic mean, the values can be positive, negative, or zero.

What is the use of arithmetic mean in real life?

The arithmetic mean is used frequently not only in mathematics and statistics but also in fields such as economics, sociology, and history. For example, per capita income is the arithmetic mean income of a nation's population.

Why arithmetic mean is the most commonly used?

Arithmetic mean refers to the average amount in a given group of data. It is the most commonly used measure of central tendency because it includes all the observation in a given data and in comparison to other measures of central tendency, arithmetic mean has very simple application.