Statistics 101 | Averages

An average or “mean” is simply a number that represents the typical value in a set of data. It considers every value in the set and tells us where the numbers evenly land. School grades, product review scores, monthly temperatures, and household income are just a few examples of numbers calculated using averages.

Product review scores, for example, come from the average of all the review scores that the product has received. The average is calculated by adding every value in the set of data (i.e., ratings, in this case) and dividing the total by the number of values in that set (i.e., the total count of reviews). This calculation gives us an even distribution of ratings per review—the average review score of the product!

In CSC data, averages are used for different purposes. For example, when setting targets and projecting year-end results. When setting targets, we typically look back at the last 5 years of an indicator’s results, and calculate the average of the "best consecutive 12 months" and compare it to the average of the "most recent consecutive 12 months". By calculating the average of results over time, we identify what is typical during that period. We also use averages when calculating Year-End projections for some of our indicators. At the beginning of a new fiscal year, April 1^st, we use the average of the last 18months of data to predict where the next year-end result will likely land.

In CSC reporting, using averages or “means” allows the organization to have a greater understanding of how well it is performing. Averages indicate what is typical in our past and current results, and give estimates on where results are heading. When observing CSC reports, be sure to watch for this icon so you know when you are looking at averages.