Question

The U.S. Federal Aviation Administration reported that passenger revenues on international flights increased from $528 million in 1986 to $5,100 million in 2009. What is the geometric mean annual percent increase in international passenger revenues?

Answer 1

Answer:

10.36 %

Explanation:

given,

It is reported that there is increase in revenue of international flight from  $528 million in 1986 to $5,100 million in 2009.

to calculate the geometric mean annual percentage

                    = $1 -(\dfrac{\ 5100}{\ 528})^{\dfrac{1}{2009-1986}}$

                    = 1 - 1.1036

                    = 0.1036  = 10.36 %

hence, the geometric mean annual percentage increase in international passenger revenues is 10.36%