The Geometric Mean Is Often Used in Business and Economics

question 91

Multiple Choice

The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. Given n values (all positive) , the geometric mean is the nth root of their product. The average growth factor for money compounded at annual interest rates of 30%, 12%, 20%, and 23% can be found by computing the geometric mean of 1.3, 1.12, 1.2, and 1.23. Find that average growth factor.

• A) 1.2108
• B) 0.5373
• C) 0.0066
• D) 1.466

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A leadership style characterized by the ability to inspire and motivate employees to exceed average performances and achieve significant changes and innovation.

Failing Division

A business unit or department within an organization that is not meeting performance expectations or achieving its goals.

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A style of leadership where leaders encourage, inspire, and motivate employees to innovate and create change that will help grow and shape the future success of the company.