Solve the problem.
-The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. Given n values (all positive), the geometric mean is the nth root of their product. The average growth factor for money compounded at annual interest rates of 49%, 19%, 24%, and 13% can be found by computing the geometric mean of 1.49, 1.19, 1.24, and 1.13. Find that average growth factor.
A)0.0116
B)1.5762
C)0.6211
D)1.2555

Question

Quizplus · Accepted Answer

The geometric mean of 1.49, 1.19, 1.24, and 1.13 is calculated as the fourth root of their product: $\sqrt[4]{1.49 \times 1.19 \times 1.24 \times 1.13} = 1.2555$.

Solve the Problem. -The Geometric Mean Is Often Used in Business and Economics