In this post, you’ll learn about the HARMEAN Function, its syntax and the way of using the HARMEAN Function in an excel spreadsheet.
What is HARMEAN Function?
HARMEAN Function is also a statistical function. The HARMEAN Function in excel calculates a mean which reduces the impact of outliers and returns the harmonic mean for the given data. The HARMONIC Mean is the reciprocal of the arithmetic mean.
In financial analysis, the HARMEAN Function calculates the average for financial multiples.
Syntax
=HARMEAN(number 1, [number 2],..)
Arguments:
- = – built-in function.
- HARMEAN() – function name.
- number 1 – first value in given data.
- number 2 – (optional) second value.
There can be up to 255 arguments to calculate the mean.
The HARMONIC Mean is also one among the three Pythagoras mean (one is arithmetic mean and the other one is geometric mean). The HARMONIC Function is always less than the geometric mean and arithmetic mean. It is the measure of ratio and rates.
Notes:
- Arguments can be numbers, names, arrays, zero or reference that contains only numbers.
- Ignores logical values, error values, empty cells and arguments that contain text.
- The Harmonic Mean is less than the geometric mean, which is always lower than arithmetic mean.
- #NUM! Error – if the point is ≤ 0.
- #VALUE! Error – if the given value is non-numerical.
Equation of Harmonic Mean is:
n – number of elements.
– is the sum of reciprocals.
How to use HARMEAN Function in Excel ?
HARMONIC Function calculates Harmonic mean which is the reciprocal of the arithmetic mean.
Example:
STEP 1:
Open the workbook in Microsoft Excel.
STEP 2:
Enter the data in the workbook.
In this example, we entered random values to calculate HARMEAN Function.
STEP 3:
In the new cell, give the formula. First always start with ‘ =’ for every functions, HARMEAN function name, followed by the open parenthesis, the arguments of the syntax.
The values are in the cell A3:A7.
STEP 4:
Press enter to get the results.
You get 79.86037 for the given data.
