The Main Purpose Of Geometric Mean

- May 29, 2020-

The main purpose of geometric mean

Calculating the geometric mean requires a continuous product relationship between observations. Its main uses are:

1. Average the ratio, index, etc .;

2. Calculate the average development speed;

Among them: sample data is non-negative, mainly used for log-normal distribution.

3. The average annual interest rate under compound interest;

4. The workshops for continuous operations shall seek the average pass rate of the products.