The geometric mean is often used in business and economics for finding average rates of change, average rates of growth,
Question:
The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. To find the geometric mean of n values (all of which are positive), first multiply the values, then find the nth root of the product. For a 6-year period, money deposited in annual certificates of deposit had annual interest rates of 5.154%, 2.730%, 0.488%, 0.319%, 0.313%, and 0.268%. Identify the single percentage growth rate that is the same as the five consecutive growth rates by computing the geometric mean of 1.05154, 1.02730, 1.00488, 1.00319, 1.00313, and 1.00268.
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Related Book For
Mathematical Interest Theory
ISBN: 9781470465681
3rd Edition
Authors: Leslie Jane, James Daniel, Federer Vaaler
Question Details
Chapter #
3
Section: 3-1 Basic Skills and Concepts
Problem: 39
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Question Posted: September 05, 2023 04:32:53