Question

6. There are two ways to calculate the mean of a series of data. The arithmetic an, written in the form i 1 takes the sum of that series and divides by the number of data points. A geometic mean, on the other hand, takes the product of a group of n data points, where each is raised to the exponent 1/n, Using a geometric mean and natural logarithms gives less weight to outliers than an arithmetic mean. Using the following per capita income data for several devel- oping countries, calculate the geometric mean by taking the natural logarithm of both sides of the definition. Remember that How does your answer compare with the result of the arithmetic mean calculation? Country 1993 Per-Capita Income (S) Pakistan Ecuador Mexico 420 1070 3470

Answer 1

Country.   PCI. Log x

Pakistan. 420. 2.6232

Ecuador. 1070. 3.0294

Mexico. 3470. 3.5403

€logx=9.1929

GM= Antilog of 9.1929/3

=Antilog of3.06431

Arithmetic mean is greaterthan geometric mean.