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palacir999 palacir999
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6 years ago
Suppose that a firm's sales were 2,500,000 four years ago, and sales have grown annually by 25, 15, -5, and 10 since that time. What was the geometric mean growth rate in sales over the past four years?
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wrote...
6 years ago
If Rg is the geometric mean, then
(1 + Rg)4 = (1 + 0.25)(1 + 0.15)(1 - 0.05)(1 + 0.10) = 1.5022  Rg = 0.1071 or 10.71
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