Page 75 - Mathematics of Business and Finance
P. 75
Chapter 1 | Review of Basic Arithmetic 55
1 Summary of Notation and Formulas
FORMULAS
Arithmetic Average | 1.5(a)
Sum of all values of terms x + x + x + ... + x
Arithmetic Average = = 1 2 3 n =
Number of terms n
Weighted Average | 1.5(b)
Sum of all weighted values w x + w x + w x + ... + w x
3 3
2 2
1 1
n n
Weighted Average = = =
Sum of the weighting factors w + w + w + ... + w n
2
3
1
Geometric Mean | 1.5(c)
1 n
G = n x . x . x . x . x . ... . x n or G = ex ∙ x ∙ x ∙ x ∙ x ∙ ... ∙ x o
n
5
3
4
1
2
5
3
4
1
2
