PRC-2 · Chapter 8 · Question 44 of 60
To properly average sequential rates of compounding growth over multiple years (such as population growth or compound interest), a statistician must use the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Geometric Mean
Explanation
The geometric mean, found by multiplying 'n' growth values together and taking the nth root, is the only statistically accurate method to average figures that are actively compounding over time.
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