Question

What are the advantages and disadvantages of geometric mean ?

Answer 1

Define geometric mean.

The geometric mean is an average or average that gives the central tendency or typical value of a series of numbers by taking the product of the numbers.

The main advantage of the geometric mean are :

1. The calculation is based on all the terms of the sequence.
2. Suitable for further mathematical analysis.
3. Fluctuations in the sample do not affect the geometric mean.
4. It gives more weight to small observations.

The disadvantage of the geometric mean are :

1. One of the main drawbacks of the geometric mean is that if one of the observations is negative, the geometric mean will be imaginary, despite the other set of observations.
2. Due to the complexity of the numbers, it is not easy for anyone other than a mathematician to understand and calculate.