Under what circumstances is harmonic mean the most suitable?

The harmonic mean is best used for fractions such as rates or multiples.

Under what circumstance is it appropriate to use geometric average?

The geometric mean is most useful when numbers in the series are not independent of each other or if numbers tend to make large fluctuations.

What is the difference between harmonic mean and arithmetic mean?

The difference between the harmonic mean and arithmetic mean is that the arithmetic mean is appropriate when the values have the same units whereas the harmonic mean is appropriate when the values are the ratios of two variables and have different measures.

What is difference between arithmetic mean and geometric mean?

Arithmetic mean is defined as the average of a series of numbers whose sum is divided by the total count of the numbers in the series. Geometric mean is defined as the compounding effect of the numbers in the series in which the numbers are multiplied by taking nth root of the multiplication.

Why geometric mean is better than arithmetic mean?

The geometric mean differs from the arithmetic average, or arithmetic mean, in how it is calculated because it takes into account the compounding that occurs from period to period. Because of this, investors usually consider the geometric mean a more accurate measure of returns than the arithmetic mean.

What is the difference between geometric mean and harmonic mean?

Difference Between Geometric Mean and Harmonic Mean The value of the harmonic mean is always lesser than the other two means. The geometric mean can be thought of as the arithmetic mean with certain log transformations. The harmonic mean is the arithmetic mean of the data set with certain reciprocal transformations.

What is difference between geometric mean and harmonic mean?

The geometric mean has the same procedure but different operations. You multiply the parts, then take the root corresponding to how many there were. The geometric mean is often used when finding the mean of data which are measured in different units. The harmonic mean is the arithmetic mean with two extra steps.

Is arithmetic mean always greater than geometric mean?

In mathematics, the inequality of arithmetic and geometric means, or more briefly the AM–GM inequality, states that the arithmetic mean of a list of non-negative real numbers is greater than or equal to the geometric mean of the same list; and further, that the two means are equal if and only if every number in the …