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The appropriate average for calculating average percentage increase in population is____________.
  • a)
    Arithmetic Mean
  • b)
    Harmonic Mean
  • c)
    Mode
  • d)
    Geometric Mean
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The appropriate average for calculating average percentage increase in...
When calculating the average percentage increase, it is important to consider the compounding nature of the changes. The geometric mean is well-suited for this purpose because it captures the growth rate over multiple periods.
The geometric mean is calculated by taking the nth root of the product of n values. In the context of calculating the average percentage increase in population, we would take the geometric mean of the growth rates observed over a specific period.
For example, let's consider a population that experienced the following percentage changes over five years: +10%, +5%, -3%, +8%, and +12%. To calculate the average percentage increase over these five years, we would take the geometric mean of these growth rates.
Using the arithmetic mean would not be appropriate in this case because it does not account for the compounding effect of the growth rates. The arithmetic mean would treat each growth rate equally, regardless of the compounding nature.
The geometric mean, on the other hand, considers the relative changes in the population size and provides an average growth rate that reflects the compounding effect over time. It is particularly useful when analyzing growth rates, financial returns, or any situation involving multiplicative changes.
In summary, the appropriate average for calculating the average percentage increase in population is the geometric mean.
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The appropriate average for calculating average percentage increase in...
The appropriate average for calculating the average percentage increase in population is the Geometric Mean.

Geometric Mean:
The geometric mean is a type of average that is calculated by taking the nth root of the product of n numbers. It is often used when dealing with growth rates, ratios, and percentages. In the case of calculating the average percentage increase in population, the geometric mean is the most appropriate choice because it takes into account the compounding effect of growth over time.

Explanation:
When calculating the average percentage increase in population, it is important to consider the compounding effect of growth. The geometric mean takes into account the fact that population growth is not linear, but rather exponential. It captures the proportional change in population over a given time period, which is essential when analyzing population growth.

Example:
Let's say we have the following population data for a city over a 5-year period:

Year 1: 100,000
Year 2: 120,000
Year 3: 144,000
Year 4: 172,800
Year 5: 207,360

To calculate the average percentage increase in population, we can use the geometric mean. Here's how it's done:

1. Calculate the percentage increase in population for each year by dividing the population of each year by the population of the previous year and subtracting 1:
Year 2: (120,000 - 100,000)/100,000 = 0.2 = 20%
Year 3: (144,000 - 120,000)/120,000 = 0.2 = 20%
Year 4: (172,800 - 144,000)/144,000 = 0.2 = 20%
Year 5: (207,360 - 172,800)/172,800 = 0.2 = 20%

2. Take the product of these percentage increases:
0.2 * 0.2 * 0.2 * 0.2 = 0.0016

3. Take the fifth root of this product to get the average percentage increase:
(0.0016)^(1/5) ≈ 0.2 = 20%

The average percentage increase in population over the 5-year period is approximately 20%.
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The appropriate average for calculating average percentage increase in population is____________.a)Arithmetic Meanb)Harmonic Meanc)Moded)Geometric MeanCorrect answer is option 'D'. Can you explain this answer?
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