What Is the Difference Between Arithmetic Average and Geometric Mean

question 45

Essay

What is the difference between arithmetic average and geometric mean?
Is one better than the other to use in financial analysis?

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Definitions:

Ethnicity

A category of people who identify with each other based on shared attributes that can include ancestry, language, history, society, culture, or nation.

Sociological Imagination

The ability to see the link between individual circumstances and larger social structures, coined by sociologist C. Wright Mills.

Historical Forces

Broad, powerful factors that shape societies and historical events over time, including economic conditions, political movements, and social change.

Colonialism

A policy or practice by which a powerful country directly controls less powerful countries and exploits them economically, defining much of global history and resulting in lasting socio-political and economic impacts.