WHAT WAS THE GEOMETRIC MEAN GROWTH RATE IN SALES OVER THE PAST FOUR YEARS? Suppose that a firm’s sales were $2,500,000 four years ago, and sales have grown annually by 25%, 15%,-5%, and 10% since that time. What was the geometric mean growth rate in sales over the past four years?
WHAT WAS THE GEOMETRIC MEAN GROWTH RATE IN SALES OVER THE PAST FOUR YEARS? Suppose that a firm’s sales were $2,500,000 four years ago, and sales have grown annually by 25%, 15%,-5%, and 10% since that time. What was the geometric mean growth rate in sales over the past four years?
Rate of Return .50 .30 –.10 –.15
Compute the geometric mean.
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NARRBEGIN: 2-Year Investment
2-Year Investment
Suppose you make a 2-year investment of $5,000 and it grows by 100% to
$10,000 during the first year. During the second year, however, the investment
suffers a 50% loss, from $10,000 back to $5,000.
NARREND
67. {2-Year Investment Narrative} Calculate the
arithmetic mean.
68. {2-Year Investment Narrative} Calculate the
geometric mean.
69. {2-Year Investment Narrative} Compare the
values of the arithmetic and geometric means.
NARRBEGIN: Ages of Senior Citizens
Ages of Senior Citizens
A sociologist recently conducted a survey of citizens over 65 years of
age whose net worth is too high to qualify for Medicaid and who have no private
health insurance. The ages of 22 uninsured senior citizens were as follows: 65,
66, 67, 68, 69, 70, 71, 73, 74, 75, 76, 77, 78, 79, 80, 81, 86, 87, 91, 92, 94,
and 97.
NARREND
70. {Ages of Senior Citizens Narrative} Calculate
the mean age of the uninsured senior citizens
71. {Ages of Senior Citizens Narrative} Calculate
the median age of the uninsured senior citizens.
72. {Ages of Senior Citizens Narrative} Explain
why there is no mode for this data set.
73. Suppose that a firm’s sales were $2,500,000
four years ago, and sales have grown annually by 25%, 15%,-5%, and 10% since that time. What was the
geometric mean growth rate in sales over the past four years?
74. Suppose that a firm’s sales were $3,750,000
five years ago and are $5,250,000 today. What was the geometric mean growth
rate in sales over the past five years?
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