Calculating the Mean
The arithmetic mean: sum all values, divide by the count. For the dataset {14, 22, 19, 31, 15, 8, 42}: Sum = 14+22+19+31+15+8+42 = 151. Count = 7. Mean = 151 ÷ 7 = 21.57. The mean is sensitive to every value in the dataset — including extremes. Add one outlier (say, 200) to the set: new sum = 351, count = 8, mean = 43.875. One outlier tripled the mean from 21.57 to 43.88, which no longer represents the typical value in the original dataset.
Weighted mean is used when values have different importance weights. Average grade where exams count 60% and homework 40%: exam score 78, homework score 92. Weighted mean = (78 × 0.60) + (92 × 0.40) = 46.8 + 36.8 = 83.6. Unweighted mean would give (78+92)/2 = 85 — ignoring the different contribution of each component. Weighted means appear in GPA calculations, index calculations (the S&P 500 is market-cap weighted), and any aggregation where inputs have different significance.
Choosing the Right Measure: Common Scenarios
Home prices: median is always the correct measure. The mean home price is skewed by multi-million dollar properties — the $5 million listing and the $500,000 listing don't average to "$2.75 million typical house." Median home price represents the house that half of sales were above and half below — genuinely central.
Test scores: when most scores cluster in one range but a few students scored extremely low (incomplete exams, administrative zeros), median better represents typical student performance than mean. A class of 30 students scoring 72 to 91 with two students receiving 0 (absent) has a mean pulled below 70 by the zeros — misleading when evaluating teaching effectiveness.
Salary negotiation: median is your friend when researching compensation. Company-reported mean salary is inflated by executive compensation. Median salary for your role level reflects what the typical person in that role earns.
Manufacturing quality control: mode is useful for identifying the most common defect type. If a production line generates defects, the mode of the defect categories identifies the highest-priority quality issue to address. Mean defect count per part and median defect count are also tracked but for different purposes.
Jennifer's Scenario: A Practical Worked Example
Jennifer, 36, in Minneapolis, Minnesota is buying a house and wants to understand the market. Recent sales in her target neighborhood over the last 6 months: $287,000, $312,000, $299,000, $745,000, $303,000, $315,000, $288,000, $297,000. Mean = $355,750 (pulled high by the $745,000 sale). Median: sorted list — $287,000, $288,000, $297,000, $299,000, $303,000, $312,000, $315,000, $745,000. Two middle values: $299,000 and $303,000. Median = $301,000. Mode = none (all values unique). Jennifer should offer around $300,000 for a typical house in this neighborhood, not $355,000. The mean is misleading here because of one outlier sale.