Geometric Mean (Noun)
Meaning
The mean of n numbers expressed as the n-th root of their product.
Classification
Nouns denoting cognitive processes and contents.
Examples
- The geometric mean of 2 and 8 is 4, because 4 is the square root of the product of 2 and 8.
- The geometric mean is a better measure of central tendency for skewed distributions, such as income data.
- In finance, the geometric mean is used to calculate the average return of an investment portfolio over time.
- When working with rates of change, such as population growth rates, the geometric mean provides a more accurate representation of the average rate.
- The geometric mean of three numbers is calculated by multiplying the numbers together and taking the cube root of the result, as in the case of the geometric mean of 1, 4, and 9.