Using the monthly inflation rates finding the geometric mean for the past 60 months. How does the geometric mean compare to the inflation rate you found on Worksheet 2? Is this what you expected? Why or why not?
To find the geometric mean of the monthly inflation rates for the past 60 months, you can follow these steps:
1. Gather the monthly inflation rates for the past 60 months. Let's call them InflationRate1, InflationRate2, ..., InflationRate60.
2. Calculate the product of all these inflation rates:
Product = InflationRate1 * InflationRate2 * ... * InflationRate60
3. Take the 60th root of the product to find the geometric mean:
GeometricMean = Product^(1/60)
Once you have calculated the geometric mean, you can compare it to the inflation rate you found on Worksheet 2.
If the geometric mean is higher than the inflation rate on Worksheet 2, it means that, on average, the monthly inflation rates over the past 60 months have been higher than the single inflation rate you found on Worksheet 2.
If the geometric mean is lower than the inflation rate on Worksheet 2, it means that, on average, the monthly inflation rates over the past 60 months have been lower than the single inflation rate you found on Worksheet 2.
If the geometric mean is equal to the inflation rate on Worksheet 2, it means that, on average, the monthly inflation rates over the past 60 months have been the same as the single inflation rate you found on Worksheet 2.
Whether this is expected or not depends on the specific situation and context. If inflation rates have been relatively stable and consistent over the past 60 months, then the geometric mean might be close to the inflation rate on Worksheet 2, and this would be expected. However, if there have been significant fluctuations in inflation rates over the past 60 months, then the geometric mean might be different from the inflation rate on Worksheet 2, and this would be less expected.