The Mean Is Sometimes Called the Arithmetic Mean to Distinguish

question 49

Short Answer

The mean is sometimes called the arithmetic mean to distinguish it from other possible means. For example, a different mean, called the geometric mean (G.M.), is used in business and economics for finding average rates of change, average rates of growth, or average ratios. This mean is defined to be the nth root of the product of the numbers. For example, the geometric mean of the numbers 4, 5, and 6 is Find the arithmetic and geometric means for the numbers 2, 4, 5, 7, 7, 8 and 11.
Round your answers to the nearest hundredth, if necessary.
The arithmetic mean is
__________
The geometric mean is
__________

---

Definitions:

Salvage Value

The projected salvage value of an asset at the termination of its useful life.

Net Present Value

A method used in capital budgeting to analyze the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows over a period of time.

Pretax Return

The earnings generated by an investment or business before taxes have been deducted.

Investment Projects

Initiatives undertaken by businesses or individuals to invest capital with the expectation of generating financial returns over time.