Merits and demerits of Averages

Median:-
Merits:-
1. Unlike arithmetic mean, median value is not destroyed by the extreme values of the
series.
2. Easy to compute and understand.
3. It can also be computed in case of frequency distribution with open ended classes.
4. It is a proper average for qualitative data where items are not measured but are scored.
5. It can be determined graphically.

Demerits:-
1. Median fails to be a representative measure in case of such series the different values of
which are wide apart from each other. Also, median is of limited representative character
as it is not based on all the items in the series.
2. When the median is located somewhere between the two middle values, it remains only
an approximate measure, not a precise value.
3. Arithmetic mean is capable of further algebraic treatment, but median is not. For
example, multiplying the median with the number of items in the series will not give us
the sum total of the values of the series.

Mean:-
Merit:-
1. It is based on all observations and it can be regarded ad representative of the given data
2. It is capable of being treated mathematically and hence it is widely used in statistical
analysis.
3. Arithmetic mean can be computed even if the detailed distribution is not known but some
of the observation and number of the observation are known.
4. Arithmetic mean rigidly defined by algebraic formula.
5. It is easy to calculate and simple to understand

Demerits:-
1. It may not be represented in actual data so it is theoretical.
2. It is affected by extreme values.
3. It can not be calculated if all the observations are not known.
4. It can not be used for qualitative data i.e. love, beauty , honesty, etc.
5. It may lead to fallacious conditions in the absence of original observations.
Mode:-
Merit:-
1. Mode is very simple measure of central tendency.
2. It is readily comprehensible and easy to compute. In some case it can be computed
merely by inspection.
3. Mode can be located graphically, with the help of histogram.
4. It is not affected by extreme values. It can be obtained even if the extreme values are not
known.
5. Mode can be determined in distributions with open classes.

Demerits:-
1. With frequencies of all items are identical, it is difficult to identify the modal value.
2. It is not based upon all the observations.
3. Unlike mean, mode is not capable of further algebraic treatment.
4. Mode can be calculated by various formulae as such the value may differ from one to
another. Therefore, it is not rigidly defined.
5. It is affected to a greater extent by fluctuations of sampling.

Geometric Mean:-
Merits:-
1. It gives more weights to the small values and less weights to the large values.
2. It is used in averaging the ratios, percentages and in determining the rate gradual increase
and decrease.
3. Rigidly defined.
4. Based on all the observations of the series.
5. Suitable for measuring the relative changes.

Demerits:-
1. It is difficult to compute.
2. It is not easy to understand.
3. If there are negative values in the series, it can not be computed.

Harmonic Mean:-
Merits:-
1. It is based on all observations.
2. It not significantly affected by the fluctuation of sampling.
3. It is capable of algebraic treatment.
4. It is an appropriate average for averaging ratios and rates.
5. It does not give much weight to large items
Demerits:-
1. Its calculation is difficult.
2. It gives a high weight-age to small items.
3. It cannot be calculated if any of the items is zero.
4. It is usually a value which does not exist in the given data.