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Geometric Mean Definition:
Geometric mean is a kind of average of
a set of numbers that is different from the
arithmetic average. The geometric mean is
well defined only for sets of positive real
numbers. This is calculated by multiplying
all the numbers (call the number of numbers
“n”), and taking the nth root of the total.
A common example of where the geometric mean
is the correct choice is when averaging
growth rates.
Formula:
Geometric Mean :
Geometric Mean = ((X1)(X2)(X3)........(XN))1/N
where
X = Individual score
N = Sample size (Number of scores)
Geometric Mean Example: To find the
Geometric Mean of 1,2,3,4,5.
Step 1: N = 5, the total number of values. Find
1/N.
1/N = 0.2
Step 2: Now
find Geometric Mean using the formula.
((1)(2)(3)(4)(5))0.2 = (120)0.2
So, Geometric Mean = 2.60517
This
example will guide you to calculate the
geometric mean manually. |