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What is the difference between an arithmetic and geometric mean?

  • Writer: Daniel Amartya
    Daniel Amartya
  • Feb 29, 2020
  • 1 min read

Data: 2, 4, 10 (positively skewed distribution)


Arithmetic mean = 2 + 4 + 18 / 3 = 8


Geometric mean = (2+4+18) cube root = 2.88

(nth root depends on the total number of data)


Geometric mean is a measure which is more suited to skewed data and for positively skewed data the geometric mean is less than the arithmetic mean, as shown in the equation above.


Image showing the data distribution is positively skewed



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