The formula for the arithmetic mean is:
\[
\text{Arithmetic Mean} = \frac{\text{Sum of all observations}}{\text{Number of observations}}
\]
Here, we are given that the arithmetic mean of 3, 4, 6, and \( x \) is 5. The number of observations is 4. Therefore:
\[
5 = \frac{3 + 4 + 6 + x}{4}
\]
Multiplying both sides by 4:
\[
20 = 3 + 4 + 6 + x
\]
\[
20 = 13 + x
\]
Subtract 13 from both sides:
\[
x = 7
\]
Thus, the value of \( x \) is 7.