Calculation note
Averages are one of the simplest ways to summarise a group of numbers, but they are only useful when the values being combined have the same meaning and deserve the same weight.
The arithmetic mean is a balance point
The arithmetic mean can be understood as the equal-share value: if the total amount were spread evenly across all entries, each entry would receive the average. That makes it useful for marks, measurements, prices and repeated observations when each entry has equal importance.
Why the count matters as much as the total
Forgetting the count is a common averaging mistake. Adding five measurements and dividing by four, or treating a missing value as zero, can change the result enough to affect a grade, quote, stock check or report.
Mean, median and weighted average are different tools
The mean uses every value and can be pulled by outliers. The median shows the middle value. A weighted average gives some values more influence. This page deliberately calculates the simple mean and states that basis visibly.