Which of the Following Statements Regarding the Arithmetic Mean and the Geometric

question 37

Multiple Choice

Which of the following statements regarding the arithmetic mean and the geometric mean is true?

• A) The arithmetic mean is always a better measure of average performance.
• B) The geometric mean is always a better measure of average performance.
• C) The arithmetic mean is a better measure of performance over single periods.
• D) The geometric mean is the best estimate of the expected return for the next period.

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Definitions:

Stream Terraces

Flat, bench-like landforms parallel to a stream, formed by the erosion of a valley by the stream or by fluctuations in sea level.

Incised Downward

A process where valleys or channels are cut deeply into the landscape, often by rivers or glaciers.

Floodplains

Flat areas adjacent to rivers that are subject to flooding and are composed of sediment deposited by the river.

Entrenched Meanders

Meandering rivers or streams that have cut deeply into the landscape, creating steep banks or cliffs, often a result of a drop in base level or uplift of the land.