discuss the demerits and uses of Geometríc Mean
Answers
The main advantages of geometric mean are listed below:
It is rigidly determined.
The calculation is based on all the terms of the sequence.
It is suitable for further mathematical analysis.
Fluctuation in sampling will not affect the geometric mean.
It gives relatively more weight to small observations.
The disadvantages of geometric mean are given below.
One of the main drawbacks of the geometric mean is that if any one of the observations is negative, then the geometric mean value will be imaginary despite the quantity of the other observations.
Due to complex numerical character, it is not easy to understand and to calculate for a non-mathematics person.
Merits of Geometric Mean
It is rigidly defined.
It is based on all the items.
It is capable of further algebraic treatment.
It gives less weight to large items and more to small items.
Demerits of Geometric Mean
It is difficult to compute.
It is not easy to understand.
If there are negative values in the series, it can not be computed.