Essentials of Statistics (5th Edition)

Published by Pearson
ISBN 10: 0-32192-459-2
ISBN 13: 978-0-32192-459-9

Chapter 3 - Statistics for Describing, Exploring, and Comparing Data - 3-2 Measures of Center - Page 95: 37

Answer

The geometric mean:1.0367. The single perentage growth: 3.67%. The result is similar to the mean but not exactly the same.

Work Step by Step

The geometric mean of n values can be computed by the nth root of the product of the values. $\sqrt[5] {1.017 \cdot 1.037 \cdot 1.052 \cdot 1.051 \cdot 1.027}=1.0367.$ Hence the single perentage growth that would be the same: 3.67%. Mean:$\frac{1.017+1.037+1.052+1.051+1.027}{5}=1.0368.$ Hence the result is similar to the mean but not exactly the same.
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