6.- Unions and employers of a corporation sign a 4-year salary agreement. In the first year,...

Transcribed Image Text:

6.- Unions and employers of a corporation sign a 4-year salary agreement. In the first year, employees' salaries increase by 4%, in the second year by 3%, in the third year by 2%, and in the fourth year by 1%. a) Determine the mean or average salary increase. Answer: b) Calculate the Geometric Mean XG for these data using this format: XG [(1+0.04)*(1+0.03)*(1+0.02)*(1+0.01) 11/4 -1. NOTE: The general formula for the geometric mean is: 2x1 2 23 ... In The Geometric Mean X is used to calculate average rates of growth where growth is determined by multiplication; also, it is used in stock indexes the annual return on the investment portfolio and in other financial calculations. 6.- Unions and employers of a corporation sign a 4-year salary agreement. In the first year, employees' salaries increase by 4%, in the second year by 3%, in the third year by 2%, and in the fourth year by 1%. a) Determine the mean or average salary increase. Answer: b) Calculate the Geometric Mean XG for these data using this format: XG [(1+0.04)*(1+0.03)*(1+0.02)*(1+0.01) 11/4 -1. NOTE: The general formula for the geometric mean is: 2x1 2 23 ... In The Geometric Mean X is used to calculate average rates of growth where growth is determined by multiplication; also, it is used in stock indexes the annual return on the investment portfolio and in other financial calculations.