Over the past eight years, Sky Western Airlines has increased their sale of seats from 61,000 to 1,440,000.Use the geometric mean to compute the average annual growth rate for Sky Western sales.
A)48.47%
B)34.6%
C)23.2%
D)66.1%
E)28.4%

Question

Quizplus · Accepted Answer

The geometric mean is calculated as the nth root of the product of n numbers. In this case, we have 8 years of data, so the geometric mean is:(1,440,000 / 61,000)^(1/8) = 1.4847The average annual growth rate is then:(1.4847 - 1) * 100% = 48.47%

Over the Past Eight Years, Sky Western Airlines Has Increased