DEPARTMENT OF TECHNICAL EDUATION

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
CCP303.26 1
Objectives

On completion of the topic, you will be able to

learn:
 Geometric Mean (G.M.) - Meaning

 Merits and Demerits of Geometric Mean

 Calculation of Geometric Mean - Individual series

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Recap

 In the previous class you learnt Arithmetic Mean,

one of the measures of central tendency
 In this class, you will know another measure of
central tendency called “Geometric Mean”

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Definition

 Geometric Mean is defined as “ the Nth root of

the product of N items or values ”

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Examples

 For two items, calculate their square root

 Ex: the geometric mean of two numbers 6 and
24 is 12 (6 x 24 = 144 and √144 = 12)
 For three items, calculate their cube root
 Ex: the geometric mean of three numbers 3,8
and 9 is 6 (3 x 8 x 9 = 216 and 3√216 = 6)
 If there are three or more items, use logarithms to
get Geometric Mean

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Geometric Mean - Individual series
Formula:

Log G.M. = log x1 + log x2 + …..+log xn

N
Log G.M. = ∑ log X
N
G.M. = Antilog (∑ log X)
N
Where N = No. of items
Σlog x = Sum of logarithms of original items

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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
CCP303.26 7
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

CCP303.26 8
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

CCP303.26 9
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
CCP303.26 10
Solution to Ex.1
Calculation of Geometric Mean

Name of the worker Weekly wages (x) Log x

A 13.0 1.1139
B 18.5 1.2672
C 20.5 1.3118
D 22.0 1.3424
E 23.0 1.3617
F 24.0 1.3802
G 25.0 1.3979
H 26.0 1.4150
I 28.0 1.4472
J 7.5 0.8751
N = 10 ∑log x = 12.9124
CCP303.26 11
Solution contd

Now substitute the

values in the
Geometric Mean = Antilog ∑log x formula

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:

Calculate Geometric Mean for the following data:

125, 1462, 38, 7, 0.22, 0.08, 12.75, 0.5

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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

CCP303.26 15
Summary

 Geometric Mean is the “ Nth root of the product of

N items or values”
 G.M.-Individual series = Antilog ∑log X
n
 GM based on each value in series and suitable to
algebraic manipulation
 Difficult to compute and interpret

CCP303.26 16
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
CCP303.26 17
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

CCP303.26 18
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)
CCP303.26 19
Frequently Asked Questions

1. Calculate Geometric Mean for the following

data:
X : 60 75 90 90 90
(C-05 Oct 2006, 4 marks)
4. GM of numbers 3, 9 and 27 ?
5. Find out the GM of series 2, 4, 8.

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