Geometric mean is a kind of average of a set of numbers that is different from the arithmetic average. The geometric mean is well defined only for sets of positive real numbers. This is calculated by multiplying all the numbers (call the number of numbers n), and taking the nth root of the total. A common example of where the geometric mean is the correct choice is when averaging growth rates.

Formula:

Geometric Mean :

Geometric Mean = ((X1)(X2)(X3)........(XN))1/N

where

X = Individual score N = Sample size (Number of scores)

Geometric Mean Example:

To find the Geometric Mean of 1,2,3,4,5.

Step 1:

N = 5, the total number of values. Find 1/N. 1/N = 0.2

Step 2:

Now find Geometric Mean using the formula. ((1)(2)(3)(4)(5))0.2 = (120)0.2 So, Geometric Mean = 2.60517 This example will guide you to calculate the geometric mean manually.