The geometric mean is a statistical measure that represents the central tendency of a set of numbers by calculating the nth root of the product of the numbers, where n is the total count of values. Unlike the arithmetic mean, which sums up the values and divides by the count, the geometric mean focuses on the multiplicative aspects of the data.
In simpler terms, the geometric mean is useful for situations involving growth rates, ratios, or any scenario where the relative magnitudes of values matter. It helps provide a more balanced representation of the dataset, especially when dealing with quantities that change multiplicatively, such as investment returns or population growth rates.
The geometric mean is a valuable tool in various fields, including finance, biology, and economics.
