QuestionCalculate the geometric mean of $1.106$, $1.073$, and $1.038$ to find the average growth factor. Round to four decimal places.

Studdy Solution
Calculate the arithmetic mean.
$$Arithmetic\, mean = \frac{10.6\% +7.3\% +3.8\%}{3} =7.233\%$$The arithmetic mean of the growth rates is7.233%, which is not the same as the geometric mean of7.34%. Therefore, the single percentage growth rate equivalent to the three successive growth rates is not the same as the mean of the three growth rates.