In what way(s) is(are) the concept of geometric mean useful?
A) In evaluating investment returns
B) In calculating average growth rates
C) In assessing the dispersion of the data
D) Both in evaluating investment returns and in calculating average growth rates

Question

Quizplus · Accepted Answer

The geometric mean is useful in evaluating investment returns as it provides a more accurate representation of overall performance compared to the arithmetic mean. It is also useful in calculating average growth rates as it takes into account the compounding effect of growth over time.

In What Way(s) Is(are) the Concept of Geometric Mean Useful