Purchase Solution

Geometric mean

Not what you're looking for?

Ask Custom Question

1. According to the Census:
http://www.census.gov/compendia/statab/cats/banking_finance_insurance/payment_systems_consum
er_credit_mortgage_debt.html

The amount of consumer credit outstanding (in billions of dollars) for selected years is as follows:

1998: $1,421
2003: $2,078
2008: $2,563

a. Find the geometric mean five-year rate of increase in consumer credit outstanding.
Hint: you'll need to compute percent changes first. Use Excel or do by hand. Regardless,describe your steps to get to your final answer.

b. Use the geometric mean rate of increase to project the amount of consumer credit outstanding in 2013. Do this by hand.

Purchase this Solution
Solution Summary

The Solution provides the geometric mean five-year rate of increase in consumer credit outstanding.
The consumer credit outstanding in 2013 is also projected.

Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

View More Free Quizzes
Related BrainMass Solutions

  • Difference between arithmetic average versus geometric average

    We will calculate the geometric mean for the growth factor. growth factor is nothing but (1+growth) So we have geometric mean = ((1+100%)*(1-50%))^(1/2)=1 So net growth rate is 1-1=0% Hence geometric mean gives correct picture for stock performance

  • Geometric Mean (example question)

    Compute the geometric mean rate of return for the five stocks.

  • Geometric Mean Rate of Increase

    Geometric mean is calculated by this formula: Here you have X = 3% for all years 1 to 10 So you geometric mean = So the geometric mean is the same as the annual rate.

  • Arithmetic mean / geometric mean

    Geometric mean is calculated as Geometric mean = ((Product (1+ annual return))^(1/number of items) - 1 Geometric mean = (((1+0.14)*(1+0.16)*(1+0.12)*(1-0.05)*(1+0.10))^1/5) - 1 Geometric mean = 9.13% The attached file has the calculation in excel

  • Geometric mean root observation

    74125 Geometric mean root observation The geometric mean is the nth root of n observations.

  • Finding Geometric mean

    199200 Finding Geometric mean Compute the geometric mean of the following percent increases: 2, 8, 6, 4, 10, 6, 8, and 4. If we have data a1, a2, ----an Then geometric mean = nth root of product of all the data numbers.

  • geometric mean rate of growth

    geometric mean is
    g=[(1+3.5%)*(1+4.25%)*(1-2.0%)*(1+2.5%)*(1+4.5%)]^(1/5)-1
    = 0.0252 =2.52%
    (^ means to the power of)
    Calculate the geometric mean rate of growth.

  • Arithmetic and geometric mean annual growth rate

    What is the geometric mean annual growth rate? Should the arithmetic mean or geometric mean be used to represent the average annual growth rate? Why? 2.

  • Geometric mean

    What is the geometric mean annual increase for the period?

  • Mean and Variance: Geometric Distribution

    26795 Mean and Variance: Geometric Distribution How to calculate mean and variance of geometric distribution (by differentiating moment-generating function)? Please refer to the attachment.

View More Related Solutions