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Understanding the Geometric Mean: A Useful Measure for Growt

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The geometric mean is a type of average that is used to find the central tendency of a set of numbers, especially when those numbers are related to growth rates or ratios. It is calculated by multiplying all the numbers together and then taking the nth root of the product, where "n" is the total number of values. For example, the geometric mean of 4 and 16 is the square root of (4 × 16), which equals 8. Unlike the arithmetic mean, the geometric mean is better suited for data that varies multiplicatively, such as population growth, interest rates, or investment returns. It is especially useful when comparing values with different ranges or when the data contains outliers, as it minimizes their impact.

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