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ANDHRA PRADESH
Name : Dr. G.R. JYOTHI
Designation : Lecturer
Branch : D.C.C.P
Institute : SGMGPT, Abdullahpurmettu
Year/Semester : III Semester
Subject : Quantitative Techniques-I
Subject Code : CCP-303
Topic : Geometric Mean (G.M)
Sub-Topic : MEANING, MERITS AND DEMERITS
Calculation of G.M.
Presentation Duration : 50 Minutes
Teaching Aids used : PPT and Animations
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Objectives
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Recap
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Definition
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Examples
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Geometric Mean - Individual series
Formula:
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Geometric Mean - Merits
Based on each and every value in series
Rigidly defined
Useful in average ratios and percentages
(E.g sales, production, etc.)
Determines rates of increase or decrease
(E.g. prices year to year)
Gives lesser weight to large items and more to
smaller ones
Suitable to algebraic manipulation
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Geometric Mean - Demerits
Difficult to understand
Difficult to compute and interpret
Cannot be computed when both negative and
positive values given in a series (or) one or more
values is zero
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Calculation of Geometric Mean
Individual Series
Steps:
Find the logarithm of each item i.e., (log x)
Obtain total i.e., (∑log x)
Divide total of logarithms by the number of items
i.e., (∑log x)
n
Find anti-logarithm of quotient obtained
∴ G.M. = Antilog (∑log x)
n
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Example 1:
The weekly wages of 10 workers are given
below, find the Geometric Mean:
Name of the worker Weekly wages (x)
A 13
B 18.5
C 20.5
D 22
E 23
F 24
G 25
H 26
I 28
J 7.5
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Solution to Ex.1
Calculation of Geometric Mean
n
= Antilog 12.9124/10
= Antilog 1.29124
= 19.55
∴Geometric Mean of 10 workers wages= Rs. 19.55
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Example 2:
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Solution to Ex.2
Calculation of Geometric Mean
X Log X
125 2.0969
1462 3.1650
38 1.5798
7 0.8451
0.22 1.3424
0.08 2.9031
12.75 1.1055
0.5 1.6990
∑log X = 6.7368
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Solution contd
Geometric Mean = Antilog ∑log x
n
= Antilog 6.7368/8
= Antilog 0.8421
= 6.952
∴Geometric Mean = 6.952
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Summary
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Points to remember
Care should be taken while identifying the logarithm
values
If the items are :
1-9 then the logarithm value will be 0.xxxx
10-99 then the logarithm value will be 1.xxxx
100-999 then the log value will be 2.xxxx
1000-9999 then the log value will be 3.xxxx
0.5 then it will be -1.xxxx
0.05 then it will be -2.xxxx
0.005 then it will be -3.xxxx
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Quiz
1. The geometric mean is the ________ root of the
product of all the measurements.
a) Nth root
b) Square root
c) None of the above
2. GM is ________
a) Easy to compute
b) Difficult to compute and interpret
c) None of the above
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Assignment
1. Calculate Geometric Mean of the following data:
1, 7, 29, 92, 375
(Answer: 30.50)
4. Calculate Geometric Mean of the following
numbers:
2574, 475, 5, 0.8, 0.08, 0.005, 0.0009
(Answer: 1.841)
7. Calculate Geometric mean of the following:
75, 0.85, 70, 15, 500, 8, 45, 250, 40 and 36.84
(Answer: 1.56473)
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Frequently Asked Questions
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