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1 October, 05:29

How do you find the Geometric Mean of a set of two or more numbers?

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  1. 1 October, 07:34
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    A geometric mean is often used when comparing different items-finding a single "figure of merit" for these items-when each item has multiple properties that have different numeric ranges.[1] For example, the geometric mean can give a meaningful "average" to compare two companies which are each rated at 0 to 5 for their environmental sustainability, and are rated at 0 to 100 for their financial viability. If an arithmetic mean were used instead of a geometric mean, the financial viability is given more weight because its numeric range is larger-so a small percentage change in the financial rating (e. g. going from 80 to 90) makes a much larger difference in the arithmetic mean than a large percentage change in environmental sustainability (e. g. going from 2 to 5). The use of a geometric mean "normalizes" the ranges being averaged, so that no range dominates the weighting, and a given percentage change in any of the properties has the same effect on the geometric mean. So, a 20% change in environmental sustainability from 4 to 4.8 has the same effect on the geometric mean as a 20% change in financial viability from 60 to 72.
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