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Mashcka [7]
4 years ago
14

Estimates using the arithmetic average will probably tend to _____ values over the long-term while estimates using the geometric

average will probably tend to _____ values over the short-term.
A. overestimate; overestimate
B. overestimate; underestimate
C. underestimate; overestimate
D. underestimate; underestimate
E. accurately; accurately
Business
1 answer:
guapka [62]4 years ago
5 0

Answer:

The answer is B. overestimate; underestimate

Explanation:

The geometric mean differs from the arithmetic average, or arithmetic mean, in how it's calculated because it takes into account the compounding that occurs from period to period.

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A+

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