Find that average growth factor, or geometric mean. What single percentage growth rateLOADING... would be the same as having three successive growth rates of 8.4%, 4.4%, and 1.8%? Is that result the same as the mean of 8.4%, 4.4%, and 1.8%?
Find that average growth factor, or geometric mean. What single percentage growth rateLOADING... would be the same as having three successive growth rates of 8.4%, 4.4%, and 1.8%? Is that result the same as the mean of 8.4%, 4.4%, and 1.8%?
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.3: The Natural Exponential Function
Problem 38E
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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 of which are positive), the geometric mean is the nth root of their product. The average growth factor for money compounded at annual interest rates of 8.4%, 4.4%, and 1.8% can be found by computing the geometric mean of 1.084, 1.044, and 1.018 . Find that average growth factor, or geometric mean. What single percentage growth rateLOADING... would be the same as having three successive growth rates of 8.4%, 4.4%, and 1.8%? Is that result the same as the mean of 8.4%, 4.4%, and 1.8%?
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