Difference between arithmetic average versus geometric average
Not what you're looking for?
Please define and describe the difference between arithmetic average versus geometric average. Which one is more effective or provides a more complete picture when valuing a stock's past performance over the last 5 years?
Purchase this Solution
Solution Summary
With good explanations and examples, the problems are fully explained.
Solution Preview
Arithmetic mean is simple average. To calculate the arithmetic mean we add the numbers in the sample and divide the sum by the total numbers of data point. So if we want to calculate the arithmetic mean of 1,2,3,4 and 5, we add them to get the value of 15 and then divide 15 by 5 to get the arithmetic mean of 3.0
To calculate Geometric mean of n numbers we ...
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Introduction to Finance
This quiz test introductory finance topics.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Learning Lean
This quiz will help you understand the basic concepts of Lean.