Advantages/Merits Of Geometric Mean
Main advantages of geometric mean can be expressed as follows:
1. Rigidly Defined
As geometric mean is rigidly defined, its value will be always fixed.
2. Based Upon Items
Geometric mean is based on all the items of the series.
3. Suitable For Percentage And Ratio
Geometric mean can determine most correct average while dealing with percentages and ratios.
4. Less Affect
Geometric mean is less affected by sampling fluctuations.
It is useful for algebraic calculation and other mathematical treatments.
Disadvantages/Demerits Of Geometric Mean
The main drawbacks or disadvantages of geometric mean can be expressed as follows:
1. Complex Method
It requires different mathematical knowledge ( logarithm, ratio, roots etc) to determine geometric mean. So, it is complex to compute and difficult to understand.
Also Read:
Also Read:
2. Less Popular
Because if difficulty in calculation and complex to understand, it is not commonly used method.
3. Not Applicable
Geometric mean cannot be calculated in the case of negative or zero value of any variable in the series.
4. In case of open end distribution, geometric mean cannot be obtained.
