To make the arithmetic average less affected by extreme anomalies, you can use a truncated mean. You use the same principle as with the arithmetic mean but ignore a certain percentage, usually 5%, of the smallest and biggest values when calculating it.
Other means are: the median or the arithmetic mean. Which one you should chose depends on the kind of data in front of you.
The main differnce lies in the way these means are affected by extreme values – their so called robustness against anomalies. Leaving the extreme values out makes the truncated mean more robust than the arithmetic mean.Back to Dictionary Read More