The (B) arithmetic mean is the best estimate of next year's return.
What is the arithmetic mean?
- The arithmetic mean or arithmetic average, or simply the mean or the average (where the context is obvious), is the sum of a set of numbers divided by the number of numbers in the set.
- The collection is typically a set of results from an experiment or observational research, or a group of survey results.
- In some instances in mathematics and statistics, the word "arithmetic mean" is favored since it distinguishes it from other means such as the geometric mean and the harmonic mean.
- The arithmetic mean is the most accurate predictor of next year's return.
Therefore, the (B) arithmetic mean is the best estimate of next year's return.
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The correct question is shown below:
The ______ mean is the best estimate of next year's return. multiple choice question.
(A) the average of the arithmetic and geometric mean
(B) arithmetic
(C) geometric