Which measure of central tendency is used to determine the average annual percent increase?
A) Arithmetic mean
B) Weighted mean
C) Mode
D) Geometric mean
E) Median

Question

Quizplus · Accepted Answer

The geometric mean is the most appropriate measure of central tendency to determine the average annual percent increase, as it takes into account the compounding effect of the percentage changes over time. The arithmetic mean would be skewed by large increases or decreases in individual years, and the median and mode do not take into account all the data points. The weighted mean assumes different weights for each data point, which may not be relevant in this context.

Which Measure of Central Tendency Is Used to Determine the Average