Updated: Aug 20, 2021

A single number taken to be typical of a series of numbers or, alternatively, that central number in a series around which to converge. There are various kinds of average. The most common is the arithmetic mean, e.g. to find the average age of a group of people, total the age of each and divide by the number in the group. Other averages are the geometric mean, the mode and the median, all of which have particular uses in statistical analysis. In insurance the word average has a specialized meaning as used in the average clause. In marine insurance further applications are found in general average loss and particular average loss.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.