The geometric mean is often used in business and economics

Last updated: 6/14/2023

The geometric mean is often used in business and economics for finding average rates of change average rates of growth or average ratios Given n values all of which are positive the geometric mean is the nth root of their product The average growth factor for money compounded at annual interest rates of 9 3 7 6 and 1 8 can be found by computing the geometric mean of 1 093 1 076 and 1 018 Find that average growth factor or geometric mean What single percentage growth rate would be the same as having three successive growth rates of 9 3 7 6 and 1 896 Is that result the same as the mean of 9 3 7 6 and 1 89 The average growth factor or geometric mean is Round to four decimal places as needed CIES