Question

Why do we calculate harmonic mean?

Answer 1

Harmonic Mean:

1. Pythagoras' mean has three types of mean and the harmonic mean is one of them.
2. It is a type of average and we get the Harmonic mean when we divide the number of values in a data series by the sum of the reciprocals of each value in the data series.
3. When we deal with the same distance, it is used in calculating average prices, average speed, etc.
4. Computing Fibonacci sequences is used by Harmonic mean.
5. The weighted harmonic mean is used in finance to average multiples like the price-earnings ratio because it gives equal weight to each data point.
6. $Harmonicmean=\left(\frac{n}{\sum {\displaystyle \frac{1}{x_i}}}\right)$, $n$ – the number of the values in a dataset, $x_i$ – the point in a dataset.