geometric mean

Root of products

The geometric mean is a type of average calculated by multiplying numbers together and taking the nth root, where n is the count of numbers.

For two numbers, it's the square root of their product; for three, the cube root.

Unlike the arithmetic mean (ordinary average), the geometric mean is suited for rates of change, ratios, and growth calculations: The geometric mean annual return was 7%.

It's always less than or equal to the arithmetic mean.

calculation

nth root

Exponent's inverse operation

antilogarithm · square root · cube root · exponent · formula · ratio · proportion · central tendency · averaging · mathematical

proportionality

ratio

Comparative numerical relation

dimensionless · normalization · aspect ratio · balance · equivalence

finance

compound interest

Returns on reinvested earnings

appreciation · growth rate · rate of return · inflation rate · benchmark · performance · index · volatility

statistics

central tendency

Data's typical value

outliers · skewness · log-normal · percentile · median · dispersion · sample · population · data analysis · normalized

Categories
Opposites
averaging method

geometric meanarithmetic mean

Sum over count

arithmetic average · sum · root mean square · maximum · median

Family

mean, geometry, geometric, geometrical, geometrically, geometers, geometer

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G