Geometric mean

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 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.

• Geometric Mean (example question)

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

• 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.

• 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 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.

• 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.