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what is the example of geometric mean. Example of the Geometric Mean in Finance. In case of continous series a mid point is computed as l o w e r l i m i t u p p e r l i m i t 2 and Geometric Mean is computed using following formula.
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Geometric Mean definition and Formula As b 2 ac or. The formula for Geometric mean is as below- Geometric Mean Formula N X1X2X3XN. The geometric mean is the nth n t h root when you multiply n n numbers.
The geometric mean of five numbers is the fifth root of their product. Geometric Mean 0275 10-9 88 103 242 10-6 00016 m. If you have 10000 and get paid 10 interest on that 10000 every year for 25 years the amount of interest is 1000 every year for 25 years or 25000. In particular this means that when a set of non-identical numbers is subjected to a mean-preserving spread that is the elements of the set are spread apart more from each other while leaving the arithmetic mean unchanged their geometric mean decreases.
