PRC-2 · Chapter 8 · Question 52 of 60
To properly calculate the average annual compounding rate of inflation over a consecutive ten-year period, a statistician must strictly utilize the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Geometric Mean
Explanation
The geometric mean is uniquely mathematically equipped to calculate the true average of sequential compounding growth rates (like inflation or compound interest), preventing the distortion that the arithmetic mean would cause.
More Statistical Measures of Data MCQs
- Q54If a dataset's arithmetic mean is strictly lower than its median, and the median is strictly lower than the mode (Mean < Median < Mode)…
- Q55Which of the following graphical tools is generally utilized to visually estimate the Median of a grouped frequency distribution?
- Q56If every single observation in a dataset is systematically multiplied by a constant factor of 3, what mathematical effect will this have…
- Q57What is the standard formula utilized to calculate the Semi-Interquartile Range (Quartile Deviation)?
- Q58Which statistical measure of central tendency is formally defined as the single value that appears with the highest frequency within a…