1. General: Number or quantity that is in-between (intermediate to) several quantities and numbers. See also mean.
2. General insurance: The term 'subject to average' means that if the sum insured at the time of a loss is less than the insurable value of the insured property, the amount claimed under the policy will be reduced in proportion to the under-insurance. Also called average clause. See also coinsurance.
3. Marine insurance: 'Average' means partial (loss); particular-average loss is borne by one party, and general-average loss is shared by all concerned. Now largely replaced with institute cargo clauses A, B, or C.
4. Quality control: Most common expression of the centering of a distribution computed by dividing the total observed values by the number of observations.
5. Securities trading: Appropriately weighted mean of a 'basket' of selected securities representing general market behavior.
Dow Jones Industrial Average (DJIA), which measures the performance of the stocks of 30 the largest US corporations, is one well-known example.
Use 'average' in a Sentence
The average age at which people become parents seems to be getting higher as more emphasis is being placed on establishing careers before starting families.
The height of the average American male is about 5'7, while the height of the average Japanese male is 5'6.
The average American household usually contains a married couple and at least two children who all live in the same house.
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