Geometric mean

1 “Arithmetic vs. Geometric Means: Empirical Evidence and Theoretical Issues” by Jay B. Abrams, ASA, CPA, MBA Copyright 1996 There has been a flurry of articles about the relative merits of using the arithmetic mean (AM) versus the geometric mean (GM). The Ibbotson SBBI Yearbook took the first position that the arithmetic mean is the correct mean to use in valuation. Allyn Joyce’s June 1995 BVR article initiated arguments for the GM as the correct mean. The previous articles have centered

prices, geometric means, repeat sales and hedonic regressions. The first significant study was by Stein (1977), who analyzes the financial return of auctioned paintings in USA and Britain for the period of 1946-68 by using the average prices methods. Stein considered the auctioned objects each year as a random sample of the underlying stock of art and constructs an index based on the yearly average transaction price. Baumol (1986) and Frey and Pommerehne (1989) calculate the geometric mean return

1) Are the four components of Marriott’s financial strategy consistent with its growth objective? a) It is advisable to manage than to own as it is consistent with the growth strategy. In this manner, mar riot can attract additional capital that gives it an opportunity to even invest more in the future, share the risks with limited partners. The partnership can be of great benefit as it is a good way of saving on taxes. b) The decision to invest in projects increases the shareholders value of the

The Huntington-Hill Method is a modified version of the Webster method, but it uses a slightly different rounding method. While Webster's method rounds at 0.5, the Huntington-Hill method rounds at the geometric mean. If a state's quotient is higher than its geometric mean, it will be allocated an additional seat. This method will almost always result in the desired number of seats which helps to avoid an Alabama Paradox. Apportionment can achieve both a fair and unfair representation

information, it makes sense to blend them to arrive at one composite growth rate to use in the valuation. This chapter examines different approaches to estimating future growth, and discusses the determinants of growth. Question 1 - Arithmetic and Geometric Means The

that these findings were not a cancer cluster, but yet individual cancer cases. Discussion The statistical test that was done for table 3 was the geometric mean in order to compare the three groups. This type of test takes the average of a set of numbers. It is derived by taking the nth root of the product of n numbers. The geometric means of urinary levels of tungsten in Sierra Vista, AZ and Churchill County, NV were compared with the levels in the U.S. population. The test determined

Nike, Inc.: Cost of Capital Case 14 A Case Brief Submitted to Submitted by In Partial Fulfillment of the Requirements for Date Submitted September 28, 2011 Summary This case highlights Kimi Ford, a portfolio manager with NorthPoint Group, a mutual-fund management firm. She managed the NorthPoint Large-Cap Fund, and in July of 2001, was looking at the possibility of taking a position in Nike for her fund. Nike stock had declined significantly over the previous year, and it appeared

Marriott 's corporation: the cost of capital What is the weighted average cost of capital for Marriott Corporation? Are the four components of Marriott 's financial strategy consistent with its growth objective? Marriott Corporation is an international company who 's the growth over the year has been more than satisfactory. In 1987, Marriott 's sales grew up by 24% and its return on equity stood at 22%. Moreover the sales and earnings pr share has doubled over the previous year. The

A mean value of turbidity over each day the sonde was deployed was used as the estimate of base flow turbidity. Siphon samplers, constructed similarly to Graczyk et al. (2000), were used to collect water samples during storm flows. They were positioned next

“Humans are pattern seeking animals and we are adept at finding patterns whether they exist or not” (adapted from Michael Shermer). Discuss knowledge questions raised by this idea in two areas of knowledge. My knowledge question is to what extent does cognitive bias influence the patterns we see in life? Cognitive bias is defined as pattern of distortion in perception and a deviation from rational decision; irrationality Decision-making, belief and behavioral