Princeton Review

Display Title

Definition--Measures of Central Tendency--Geometric Mean

Geometric Mean

Geometric Mean

Topic

Statistics

Definition

The geometric mean is the nth root of the product of n numbers, used to calculate average rates of growth.

Description

The geometric mean is particularly useful in finance and economics for calculating compound interest and growth rates. Unlike the arithmetic mean, it is appropriate for data sets with values that are multiplicatively related. For example, the geometric mean of 2, 8, and 32 is calculated as (2 × 8 × 32)1/3 = 8. In mathematics, the geometric mean is essential for understanding exponential growth and decay.

In math education, the geometric mean is introduced in lessons on sequences and series, providing a deeper understanding of exponential functions. Students learn to apply the geometric mean in real-world scenarios, such as calculating the average rate of return on investments. Teachers use the geometric mean to explain the concept of proportionality and its applications in various fields.

Geometric Mean
Think of geometric mean as taking a rectangular 
area and turning into a square of the same area.

For a complete collection of terms related to Measures of Central Tendency click on this link: Measures of Central Tendency Collection.

Common Core Standards CCSS.MATH.CONTENT.HSS.CP.B.6, CCSS.MATH.CONTENT.HSS.CP.B.7, CCSS.MATH.CONTENT.HSS.CP.B.8, CCSS.MATH.CONTENT.HSS.CP.B.9, CCSS.MATH.CONTENT.HSS.MD.A.2, CCSS.MATH.CONTENT.HSS.MD.B.5, CCSS.MATH.CONTENT.HSS.MD.B.5.B, CCSS.MATH.CONTENT.HSS.MD.B.6, CCSS.MATH.CONTENT.HSS.MD.B.7
Grade Range 6 - 10
Curriculum Nodes Algebra
    • Probability and Data Analysis
        • Data Analysis
Copyright Year 2021
Keywords data analysis, measures of central tendency, definitions, glossary term, statistics