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What is the use of geometric mean?
Find the use in the following link: "Calculation of the geometric mean of two numbers".
When is it appropriate to use arithmetic mean as opposed to the median?
when is it appropriate to use arithmetic mean as opposed to median
Practical use of arithmetic progression?
Arithmetic progression and geometric progression are used in mathematical designs and patterns and also used in all engineering projects involving designs.
Geometric Mean vs Arithmetic Mean?
We all want to be above average, don’t we? Definitely when discussing average investment results we want higher averages, right? But how do you compute your average rates of return? One might think they’d do the calculation like any other average they would use day to day; start by adding a series of values together and then divide the sum by the number of values in the series. Such a calculation is known as the arithmetic mean and while handy to use for averaging things like gas prices at different filling stations or students’ test results, it isn’t adequate for finding the average rate of return on your investment portfolio.The reason is that each value in the series that represents your rate of return on your portfolio is itself a product of other numbers. If your investment results over a three-year period were 10%, 30%, and 50%, what this means is that your portfolio value at the beginning of each year was multiplied by 1.10, 1.30, and 1.50 respectively. It wouldn’t be appropriate to use the arithmetic mean here because each years’ result is the product of your portfolio’s value and some rate of return. You would instead use something called the geometric mean.The way to get to the geometric mean is by first finding the product of the series of data. In this example we would solve for the product of the series, 1.1, 1.3, and 1.5.1.1 * 1.3 * 1.5 = 2.145The next step would be to take the nth root of the resulting product, where n = the number of values in the series. In this case we have 3 values in the series, so n = 3. That means we’d take the cube root of 2.145. Another way to do this would be to raise the value 2.145 by the power of 1/n. (1/3 = .333333333), so 2.145.333333 = 1.289662. So the geometric mean would equal .289662 or 28.97% return.It should be noted that while it is not appropriate to use the arithmetic mean to show investment results, the number will always skew higher than the geometric mean would. (In the above example the arithmetic mean would have shown average rates of return of 30%.)So when an investment advisor shows you any sort of average rates of return over a number of periods ask them if they’re showing you the arithmetic or geometric mean. They should be using the geometric mean to gauge average rates of return so as to not overstate your returns.
Advantages and disadvantages of Arithmetic mean?
There are a great number of advantages and disadvantages of Arithmetic mean. One disadvantages is that it is not accurate.
What are the advantages of arithmetic mean?
It is easy to use in further analysis calculation can be done easily using arithmetic mean is unique value for each data set
Geometric mean of 128 and 8?
For two numbers, the geometric mean is the sort of their product. Note I use * to mean multiply So here GM= sqrt (128*8) = sqrt (1024) =32
What is the use of coefficient of deviation?
the relative measures of the mean deviation to the average about which it is calculated,i.e. arithmetic mean.
What does geometric mean mean?
A geometric mean gives you the true average of any given data. Geometric averages are one out of three parts of what is known as a Pythagorean mean analysis of data.
What is the geometric mean of 81 and 16?
Just use the definition of geometric mean. Multiply the two numbers, then take the square root of the result. (To take the geometric mean of three numbers, multiply all of them, then take the cubic root, etc.)
What is the geometric mean of 3 and 15?
Just use the definition of geometric mean. Multiply all the numbers together, then take the square root. (In this case, it is the square, or second, root, because there are two numbers; for the geometric mean of three numbers, you take the cubic root, etc.)
What methods could you use to calculate the y-coordinate of the midpoint?
The average, or arithmetic mean.
