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In particular, given 10 years of revenue data, what is "average revenue growth" understood to mean?

  1. The arithmetic average of the 9 yearly growth rates
  2. The geometric rate of return
  3. Something else
  4. No clear meaning -- phrase is not specific enough

I have to update an infographic for a lay audience which includes the "ten-year average revenue growth". The old report used arithmetic average, but geometric rate of return feels right to me. The difference is small, though, in this case.

xan
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1 Answers1

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unfortunately, I believe it means arithmetic average, but I agree with you that geometric rate of return would let you find the 10 yr number given the first, where the arithmetic won't.

JoeTaxpayer
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