Please help me with this question. I don’t understand how to do this.
1 answer:
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Answer:
the annual growth rate is 15.47 %
Step-by-step explanation:
Given the data in the question;
Internet users grew from 25.8 million to 70.6 million,
from the year 2009 to the year 2016.
Using geometric mean, Annual growth rate = ?
To determine the average growth rate of a time series using geometric mean, we use the following formula;
= [
Xₙ / X₀
] - 1
where Xₙ is the data value of the last year { 70.6 million }
X₀ is the data value for the first year { 25.8 million }
n is the sample size or the time difference, ( 2016 - 2009 = 7 )
so we substitute;
= [
70.6 / 25.8
] - 1
= [
2.736434
] - 1
= [ 1.15466 ] - 1
= 0.15466
= ( 0.15466 × 100 )%
= 15.47 %
Therefore, the annual growth rate is 15.47 %