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What is the arithmetic average of 12%, 14%, -20% (that’s negative 20) and 10%?  What is the geometric average?

May 6th, 2015

How to find the mean/average

Count the number N of data points in your data set.

Sum up the total of your data set; add them all together.

Average = Mean = Sum/N

Average (Mean):

Count:  4

Sum:  0

Average:  0 / 4 = 0

Geometric Average

Step 1:  Use formula Geometric Mean = (a1 × a2 . . . an) 1N where, N = number of entries.

Now plug in the value in respective place

Step 2:  Now multiply the numbers together and then calculate the nth root, gives the Geometric Mean value.

So the geometric average of 12%, 14%, -20%, 10% = NaN


May 6th, 2015

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