If a principal grows by rate r1% in year 1, r2% in year 2, and r3% in year 3, which central tendency gives the correct a...

Type: MCQ • Marks: 1

If a principal grows by rate r1% in year 1, r2% in year 2, and r3% in year 3, which central tendency gives the correct average growth rate?

A. Geometric Mean

B. Harmonic Mean

C. Arithmetic Mean

D. Median

Explanation

For compounding percentage growth rates over time, average rate is calculated using Geometric Mean.

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UP TGT Mathematics

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