USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 4.3. Calculate the average annual rate of change for GB Industries for the five-year period using the arithmetic mean.
A) 0.098%
B) 9.80%
C) 8.50%
D) 8.00%
E) 89.00%

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
 
-Refer to Exhibit 4.3. Calculate the average annual rate of change for GB Industries for the five-year period using the arithmetic mean.
A) 0.098% 
B) 9.80% 
C) 8.50% 
D) 8.00% 
E) 89.00%

Quizplus · Accepted Answer

The average annual rate of change using the arithmetic mean involves summing the annual rates of change and then dividing by the number of years. If the data provided in Exhibit 4.3 showed a consistent increase or decrease that, when calculated, results in an average annual rate of change of 9.80%, then option B is correct. This calculation typically involves finding the percentage change for each year, summing those changes, and then dividing by the number of years (5 in this case).