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CMA Foundation · Fundamentals of Business Mathematics and Statistics · Measures of Central Tendency and Dispersion

What is the geometric mean of the three values 2, 8 and 32?

The geometric mean is 8. Multiply the three values to get 2 × 8 × 32 = 512, then take the cube root, which is 8. The figure 14 is the arithmetic mean and is not the geometric mean.

  1. A8Correct
  2. B14
  3. C6
  4. D16

Explanation

GM = (2 × 8 × 32)^(1/3) = 512^(1/3) = 8. The value 14 is the arithmetic mean (42/3), which is wrong because the GM uses the product, not the sum. The GM of positive unequal values is always less than their AM.

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