In what way(s)is the concept of geometric mean useful?
A)In evaluating investment returns
B)In calculating average growth rates
C)In assessing the dispersion of the data
D)Both A and B

Question

Quizplus · Accepted Answer

Geometric mean is useful in both evaluating investment returns and calculating average growth rates. It helps in providing a more accurate representation of the growth experienced over a certain period of time by a given investment or asset. It calculates the compound average growth in investment returns over multiple periods. The geometric mean also has the advantage that it reduces the influence of extreme values, making it a more reliable measure of growth.

In What Way(s)is the Concept of Geometric Mean Useful