LOL
We’re talking about GDP
BREAKING DOWN 'Average Annual Growth Rate (AAGR)'
The average annual growth rate is used in many fields of study. For example, in economics, it is used to provide a better picture of the changes in economic activity (e.g. growth rate in real GDP).
And why would I post the mean and not the average when I was responding to this...?
The average GDP during the Obama years was 1.7%.
We’re talking about GDP
Like Investopedia says.....
The geometric mean is used in finance to calculate average growth rates
And why would I post the mean and not the average
Like Investopedia says.....
Mean
https://www.investopedia.com/terms/m/mean.asp
The simple mathematical average of a set of two or more numbers. The mean for a given set of numbers can be computed with the arithmetic mean method, which uses the sum of the numbers in the series, and the geometric mean method.
Investopedia also says...
The average annual growth rate is used in many fields of study. For example, in economics, it is used to provide a better picture of the changes in economic activity (e.g. growth rate in real GDP).
... and again, I responded to someone talking about
average annual GDP growth. Why would I switch to
geometric mean when
average was being discussed?
The average annual growth rate is useful for showing trends; however, it can be misleading to analysts because it does not accurately depict changing financials. In some instances, it can overestimate the growth of an investment. For example, consider an end-of-year value for year 5 of $100,000. The percentage growth rate for year 5 is -50%. The resulting AAGR would be 5.2%; however, it is evident from the beginning value of year 1 and the ending value of year 5, the performance yields a 0% return.
There were no analysts misled and no one was measuring growth over a period of time. Thanks for showing yet more reasons why you stupidly thought to switch from average to mean.
And you still haven’t answered the question... why would I
switch to
mean when I was responding to someone talking about
average?
Is that how you debate? You respond to posts by switching up the discussion?