Understanding Basic Statistics 6th Edition by Charles Henry Brase,Corrinne Pellillo Brase

Exercise 32

Expand Your Knowledge: Geometric Mean When data consist of percentages, ratios, growth rates, or other rates of change, the geometric mean is a useful measure of central tendency. For n data values,

To find the average growth factor over 5 years of an investment in a mutual fund with growth rates of 10% the first year, 12% the second year, 14.8% the third year, 3.8% the fourth year, and 6% the fifth year, take the geometric mean of 1.10, 1.12, 1.148, 1.038, and 1.16. Find the average growth factor of this investment.
Note that for the same data, the relationships among the harmonic, geometric, and arithmetic means are harmonic mean geometric mean arithmetic mean (Source: Oxford Dictionary of Statistics).