DEFINITION of 'Adjusted Mean'

Statistical averages that have been corrected to compensate for data imbalances. Outliers, present in data sets will often be removed as they have a large impact on the calculated means of small populations; an adjusted mean can be determined by removing these outlier figures. Adjusted means are also called "least squares means" and are calculated using a multiple regression equation.

BREAKING DOWN 'Adjusted Mean'

For example, in studying both men and women who participate in a particular behavior or activity, it may be necessary to adjust the data to account for the impact of gender on the results. Without using adjusted means, results that might at first seem attributable to participating in a certain activity or behavior could be skewed by the impact of participants' gender. In this example, men and women would be considered covariates, a type of variable that the researcher cannot control but that affects an experiment's results. Using adjusted means compensates for the covariates to see what the affect of the activity or behavior would be if there were no differences between the genders.



RELATED TERMS
  1. Covariance

    A measure of the degree to which returns on two risky assets ...
  2. Statistics

    A type of mathematical analysis involving the use of quantified ...
  3. Adjustment Index

    A modification made to a piece of numerical data, or a set of ...
  4. Adjusted Present Value - APV

    The Net Present Value (NPV) of a project if financed solely by ...
  5. Highly Compensated Employee

    For employer-sponsored, tax-advantaged retirement plan purposes, ...
  6. Adjusted Closing Price

    A stock's closing price on any given day of trading that has ...
Related Articles
  1. Investing

    What is Covariance?

    Covariance is a concept used in statistics and probability theory to describe how two variables change when compared to one another. In business and investing, covariance is used to determine ...
  2. Personal Finance

    The Unique Ways Women Approach Finance

    Understanding gender differences and how they are changing is fundamental to understanding the investing world.
  3. Financial Advisor

    Wealthy Men and Women Investors: 4 Key Differences

    Research validates that wealthy men and women invest differently. Here's why—the insights may help advisors better tailor their services to clients.
  4. Personal Finance

    Gender Pay Inequality Is Seen Across the World (KFY)

    Learn the statistics behind gender pay inequality around the world. The Economist conducted an analysis of 8 million employees in 33 countries to find out.
  5. Financial Advisor

    Why Retirement Planning Differs for Women

    Women face unique challenges when it comes to saving for retirement compared to men. Here's why and how to better prepare.
  6. Financial Advisor

    These Investors Needs More Advisor Attention

    Women live longer than men and their post-retirement finances are in jeopardy. A new report by the National Institute for Retirement Security shows why.
  7. Retirement

    How Do Women Close The Retirement Savings Gap?

    Every year, BlackRock conducts a survey to learn about the attitudes and behavior of investors. We just released our findings on women and retirement.
  8. Retirement

    Why Women Have a Tough Time Saving for Retirement

    Retirement saving is hard but for women, there are unique challenges. Whether its caregiving or pursuit of a low wage job women aren't saving enough.
  9. Financial Advisor

    Are Women's Portfolios Better Than Men's?

    A recent study found that women's portfolios tend to perform better than men's. This is likely because women are more averse to risk.
  10. Personal Finance

    Women And Finances: Is There A Gender Bias?

    Uncover some very complex reasons for female gender biases in the finance world.
RELATED FAQS
  1. How does covariance impact portfolio risk and return?

    Understand how covariance is related to the risk and return of a portfolio of stocks, and learn how covariance is used to ... Read Answer >>
  2. What is the difference between variance and covariance?

    Learn more about the differences between covariance and variance, and how these metrics can be of use to you in minimizing ... Read Answer >>
  3. How is covariance used in portfolio theory?

    Learn how covariance is used to reduce risk in modern portfolio theory, how covariance is calculated and how it is used to ... Read Answer >>
  4. When should I use seasonally adjusted data from the consumer price index (CPI)?

    Learn what seasonally adjusted data is, how it is determined and when it should be used to evaluate the information gathered ... Read Answer >>
  5. What is the difference between standard deviation and mean?

    Understand the basics of calculating and interpreting mean and standard deviation and how these mathematical fundamentals ... Read Answer >>
  6. What are the differences among gross income, adjusted gross income and modified adjusted ...

    Discover how calculating total taxable income is easier when gross income, adjusted gross income and modified adjusted gross ... Read Answer >>
Hot Definitions
  1. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  2. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  3. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  4. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  5. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  6. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
Trading Center