Question

How is the simple arithmetic mean calculated by short cut method or deviation method?

Answer 1

In short cut method / deviation method we take an arbitrary value in x called an Assumed value (A). 

Deviations (di) for observations from Assumed value (A) are given by:

 

di = xi - A

We proceed to calculate simple arithmetic mean as follows:

Thus, in this method:

x̅ = A + 1/n∑di

In short cut method / deviation method we take an arbitrary value in x called an Assumed value (A) in order to calculate arithmetic mean.