explain The uses of geometric average.
Answers
Answer:
Geometric Mean Definition and Formula
The geometric mean is a type of average , usually used for growth rates, like population growth or interest rates. While the arithmetic mean adds items, the geometric mean multiplies items. Also, you can only get the geometric mean for positive numbers.
Answer:
The geometric mean is used in finance to calculate average growth rates and is referred to as the compounded annual growth rate. Consider a stock that grows by 10% in year one, declines by 20% in year two, and then grows by 30% in year three. The geometric mean of the growth rate is calculated as follows: ((1+0.
Geometric Mean Definition and Formula
The geometric mean is a type of average , usually used for growth rates, like population growth or interest rates. While the arithmetic mean adds items, the geometric mean multiplies items. Also, you can only get the geometric mean for positive numbers.