Geometric Mean The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. To find the geometric mean of n values (all of which are positive), first multiply the values, then find the n th root of the product. For a 6-year period, money deposited in annual certificates of deposit had annual interest rates of 5.154%, 2.730%, 0.488%, 0.319%, 0.313%, and 0.268%. Identify the single percentage growth rate that is the same as the five consecutive growth rates by computing the geometric mean of 1.05154, 1.02730, 1.00488, 1.00319, 1.00313, and 1.00268.
Geometric Mean The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. To find the geometric mean of n values (all of which are positive), first multiply the values, then find the n th root of the product. For a 6-year period, money deposited in annual certificates of deposit had annual interest rates of 5.154%, 2.730%, 0.488%, 0.319%, 0.313%, and 0.268%. Identify the single percentage growth rate that is the same as the five consecutive growth rates by computing the geometric mean of 1.05154, 1.02730, 1.00488, 1.00319, 1.00313, and 1.00268.
Elementary Algebra
17th Edition
ISBN:9780998625713
Author:Lynn Marecek, MaryAnne Anthony-Smith
Publisher:Lynn Marecek, MaryAnne Anthony-Smith
Chapter6: Polynomials
Section6.2: Use Multiplication Properties Of Exponents
Problem 168E: Depreciation Once a new car is driven away from the dealer, it begins to lose value. Each year, a...
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Geometric Mean The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. To find the geometric mean of n values (all of which are positive), first multiply the values, then find the n th root of the product. For a 6-year period, money deposited in annual certificates of deposit had annual interest rates of 5.154%, 2.730%, 0.488%, 0.319%, 0.313%, and 0.268%. Identify the single percentage growth rate that is the same as the five consecutive growth rates by computing the geometric mean of 1.05154, 1.02730, 1.00488, 1.00319, 1.00313, and 1.00268.
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