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Greshak Company records the following profits over a period being analyzed: 2016 $100,000 2017 $120,000 2018 $ 72,000 2019 $ 93,600 2020 $121,680 Based on
Greshak Company records the following profits over a period being analyzed:
2016 $100,000
2017 $120,000
2018 $ 72,000
2019 $ 93,600
2020 $121,680
Based on this information, calculate the Arithmetic Average and the Geometric Average of Greshak's annual profitability over the given period time. Describe what each average represents. What explains the difference between these two "averages" and briefly describe when each might be used to project future growth.
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