Geometric Mean

The geometric mean of a set of positive numbers is defined by the “nth root” of the “n”numbers multiplication.

    \[{\bar{X}_{g}}= \left (x_{1}*x_{2}\cdots x_{n} \right )^{1/n}=\sqrt[n]{x_{1}*x_{2}\cdots x_{n}}\]

The geometric mean is widely used in financial when calculating the internal tax rate or calculating the equivalent tax of a financial investment.

Here you will find more examples on how to calculate the geometric mean.

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