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Question

What is the difference between arithmetic mean and geometric mean?


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Solution

The difference between arithmetic mean and geometric mean:

Arithmetic MeanGeometric Mean
Arithmetic mean is the sum of a collection of numbers divided by the number of numbers in the collection.The geometric mean is the average value which signifies the central tendency of the set of numbers by finding the product of their values.

The arithmetic mean of a1,a2,a3,....,an is:

A.M.=a1+a2+a3+....+ann

The geometric mean of a1,a2,a3,....,an is:

G.M.=a1·a2·a3·....·ann


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