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Geometric mean
- It is a measure of central tendency normally utilized to measure industrial increases rates.
- It is explained as the nth root of the product of 'n' observations or values
'Illustration
In year 1995 five firms registered the given economic growth rates; 26 percent, 32 percent, 41 percent, 18 percent and 36 percent.
Required
Estimate the GM for the above values
No. Log
26
1.4150
32
1.5052
41
1.6128
18
1.2533
36
1.5563
7.3446
Hence Log of GM = 1/5 x 7.3446
= 1.46892
Then GM = Antilog of 1.46892
= 29.43
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