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# Geometric Mean The geometric mean is often used in ISBN: 9780321836960 18

## Solution for problem 37BB Chapter 3.2

Elementary Statistics | 12th Edition

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Problem 37BB

Geometric Mean The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. Given n values (all of which are positive), the geometric mean is the nth root of their product. Find the average growth factor for money deposited in annual certificates of deposit for the past 5 years (as of this writing) with annual interest rates of 1.7%, 3.7%, 5.2%, 5.1%, and 2.7% by computing the geometric mean of 1.017, 1.037, 1.052, 1.051, and 1.027. What single percentage growth rate would be the same as having the five given successive growth rates? Is that result the same as the mean of the five annual interest rates?

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Solution 37BB

The single percentage growth rate is (1.0367-1.00)x100%=3.67%.The mean percentage of annual interest rates...
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##### ISBN: 9780321836960

Since the solution to 37BB from 3.2 chapter was answered, more than 447 students have viewed the full step-by-step answer. The full step-by-step solution to problem: 37BB from chapter: 3.2 was answered by , our top Statistics solution expert on 03/15/17, 10:30PM. This full solution covers the following key subjects: Rates, mean, geometric, average, growth. This expansive textbook survival guide covers 121 chapters, and 3629 solutions. This textbook survival guide was created for the textbook: Elementary Statistics, edition: 12. The answer to “Geometric Mean The geometric mean is often used in business and economics for finding average rates of change, average rates of growth, or average ratios. Given n values (all of which are positive), the geometric mean is the nth root of their product. Find the average growth factor for money deposited in annual certificates of deposit for the past 5 years (as of this writing) with annual interest rates of 1.7%, 3.7%, 5.2%, 5.1%, and 2.7% by computing the geometric mean of 1.017, 1.037, 1.052, 1.051, and 1.027. What single percentage growth rate would be the same as having the five given successive growth rates? Is that result the same as the mean of the five annual interest rates?” is broken down into a number of easy to follow steps, and 119 words. Elementary Statistics was written by and is associated to the ISBN: 9780321836960.

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