Which of the Following Is a Limitation of Using Arithmetic

question 111

Multiple Choice

Which of the following is a limitation of using arithmetic averages to calculate growth rates?

• A) Arithmetic averages are difficult to calculate.
• B) Arithmetic averages cannot be used when growth is negative.
• C) Arithmetic averages do not capture the exponential nature of growth and thus are not suitable for long-run predictions.
• D) The calculation of growth using arithmetic averages requires more data than other methods require.

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