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What is the difference between Arithmetic mean and Geometric mean?

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Arithmetic mean, generally called simple average, is the average of a set of given numbers. In other words, it is the sum of the given numbers in a set divided by the number of items in that set. For example, arithmetic mean of 2, 5, 6 and 7 is 5. 2+5+6+7 = 20. As there are four numbers, 20/4 = 5... read more

Arithmetic mean, generally called simple average, is the average of a set of given numbers. In other words, it is the sum of the given numbers in a set divided by the number of items in that set. For example, arithmetic mean of 2, 5, 6 and 7 is 5. 2+5+6+7 = 20. As there are four numbers, 20/4 = 5 and hence the Arithmetic Mean. On the other hand, Geometric Mean (GM) is the nth root of product of a given set of numbers. Suppose the numbers are 1, 3, 9, 27 and 81, GM is the fifth root (as there are 5 numbers) of the product of the given numbers. 1 × 3 × 9 × 27 × 81 = 59049 is the product. Now let us find the fifth root, 5?59049 = 9. So the GM of 1, 3, 9, 27 and 81 is 9 read less

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An Arithmetic progression (AP) or arithmetic sequence is a sequence of numbers such that the difference between the consecutive terms is constant and Geometric progression, also known as a geometric sequence, is a sequence of numbers where each term after the first is found by multiplying the previous... read more

An Arithmetic progression (AP) or arithmetic sequence is a sequence of numbers such that the difference between the consecutive terms is constant and Geometric progression, also known as a geometric sequence, is a sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio. read less

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AM and GM both meant for average. AM is simple average or mean value of given set of numbers by taking simply sum of the given items divided by total items. While, GM means Nth root of the product of given set of numbers or items. GM mostly useful in calculating percentages to know the growth rate.

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