Answer: 1.09
Step-by-step explanation:
Given the following :
Year__growth rate ___growth factor
1 ______10.5% _____ 100%+10.5%
2______12.1%______ 100%+12. 1%
3______13.5%______ 100%+13.5%
4______3.5%_______ 100%+3.5%
5______7.3%_______ 100%+7.3%
The geometric mean:
(Product of the n data values)^(1/n)
Where n = number of data values
For the data above, the average growth factor :
n = 5
(1.105×1.121×1.135×1.035×1.073)^(1/5)
= (1.561362785497125)^(1/5)
= 1.0932028
= 1.09
Hence, average growth factor = 1.09
