Geometric mean is the nth root of the product of N items or values.
Calculation of Geometric Mean (G) :
Algebraic Characteristics of Geometric Mean :
(i) The product of the items remain unchanged if each item is replaced by geometric mean.
(ii) Geometric mean cannot be found if the value of some item in the series is negative or zero.
(iii) The product of corresponding ratios on either side of the geometric mean is always equal.
(iv) Not affected by changing the sequence of items.
Geometric mean is appropriate or useful :-
- When ratios or percentages are to be found.
- In determining rates of increase or decrease.
When the different values are at vast difference.