To find the geometric mean in a sequence, you multiply all the numbers in the sequence together and then take the nth root of the product, where n is the total number of values in the sequence.
Steps to Calculate the Geometric Mean
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Identify the Sequence: Determine the sequence of numbers for which you want to calculate the geometric mean. For example: 2, 8, 32.
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Multiply All Numbers Together: Multiply all the numbers in the sequence. Using our example: 2 8 32 = 512.
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Determine the Number of Values (n): Count how many numbers are in the sequence. In our example, there are 3 numbers. Therefore, n = 3.
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Calculate the nth Root: Find the nth root of the product calculated in step 2. This can be expressed as:
Geometric Mean = (Product)^(1/n)
In our example, we need to find the cube root (3rd root) of 512:
Geometric Mean = (512)^(1/3) = 8
Therefore, the geometric mean of the sequence 2, 8, 32 is 8.
Formula
The geometric mean (GM) can be represented by the following formula:
GM = n√(x1 x2 ... * xn)
Where:
- x1, x2, ..., xn are the numbers in the sequence.
- n is the number of values in the sequence.
Example with Two Numbers
Let's say we have the numbers 3 and 1.
- Multiply: 3 * 1 = 3
- Number of values: n = 2
- Geometric Mean = √(3) ≈ 1.732
Practical Applications
The geometric mean is particularly useful when dealing with:
- Averages of ratios or percentages.
- Financial returns over multiple periods.
- Measurements that tend to grow exponentially.
Differences from Arithmetic Mean
Unlike the arithmetic mean (simple average), the geometric mean is less affected by extreme values because it uses multiplication instead of addition. This makes it a better measure of central tendency for certain types of data.