**Sample mean is calculated by finding the sum of all terms in the selected sample and dividing this figure by the total number of terms.** This formula is used to compute the average of the data collected.

The sample mean formula is essential when it comes to finding the average of raw data. In statistics, the sample mean is used as an estimate of the population mean since it is usually enormous. For example, it can be used to calculate the mean marks obtained on an exam by a group of students in a selected class. Alternatively, it is can be used in evaluating the average age of people in a given country since it would be very difficult to add up the ages of every single member of the population.