Where to use harmonic mean?

The harmonic mean is particularly useful in situations where rates or ratiOS are involved, such as calculating average speeds or rates of return. It is most appropriate when the numbers being averaged are defined in relation to some unit, like time or distance, and when the values are inversely related. Common applications include averaging multiple rates of investment return or when assessing the average performance of a group of entities that contribute to a whole, ensuring that smaller values have a greater impact on the result.