Merits and Demerits of Geometric mean (GM)

Merits of GM

  • It is based on all the items of the data.
  • It is rigidly defined. It means different investigators will find the same result from the given set of data.
  • It is a relative measure and given less importance to large items and more to small ones unlike the arithmetic mean.
  • Geometric mean is useful in ratios and percentages and in determining rates of increase or decrease.
  • It is capable of algebraic treatment. It mean we can find out the combined geometric mean of two or more series.
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Demerits or Limitations of GM

  • It is not easily understood and therefore is not widely used.
  • It is difficult to compute as it involves the knowledge of ratios, roots, logs and antilog.
  • It becomes indeterminate in case any value in the given series happen to be zero or negative.
  • With open-end class intervals of the data, geometric mean cannot be calculated.
  • Geometric mean may not correspond to any value of the given data.
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