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
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.
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
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.
