What does the term “arithmetic mean” refer to in data interpretation?

The term "arithmetic mean" refers to the average value calculated from a set of data values. This is determined by summing all of the values in the data set and then dividing that total by the number of values. The arithmetic mean provides a measure that represents a central point within the data, allowing for a straightforward comparison of different data sets. This is especially useful in statistical analyses where an understanding of overall trends or averages is necessary.

In contrast, other concepts like the highest value or the mode (the most frequently occurring value) serve different purposes in data interpretation and do not provide the same central tendency measure that the arithmetic mean does. The range, defined as the difference between the largest and smallest values, further describes the spread of the data but not its central location. Therefore, defining the arithmetic mean strictly as the average ensures clarity in its statistical application and utility.