Excel Business Analytics Free Course - Forecasting, Linear Programming, Simulation & more. - Basic Excel Business Analytics 22 Geometric Mean Average Compounding Rate GEOMEAN RRI Function

Download files: https://people.highline.edu/mgirvin/AllClasses/348/348/AllFilesBI348Analytics.htm Learn: 1) (00:12) Intro to Geometric Mean 2) (00:52) Formula for Growth Rate or % Change 3) (01:51) Arithmetic Mean is the incorrect calculation for Growth Rates 4) (02:54) Geometric Mean Formula 1 when you have End Amount (PV Amount) and End Amount (FV Amount) and the number of compounding periods. 5) (04:27) Geometric Mean Formula 2 when you have End Amount (PV Amount) and End Amount (FV Amount) and the number of compounding periods. RRI Function. New in Excel 2013. 6) (05:46) Geometric Mean Formula 1 when you have a column of growth rates or % changes. GEOMEAN function and an Array Calculation. Remember, for Array Formulas you must enter the formula into the cell with the special keystroke: Ctrl + Shift + Enter. 7) (08:16) Geometric Mean Formula 2 when you have a column of growth rates or % changes. 8) (08:45) Formula 1: Prove that our calculations are correct by calculating The End Amount (FV Amount). Formula: Beg*(1+GeoMean)^TotalPeriods or PV*(1+GeoMean)^TotalPeriods 9) (09:29) Formula 2: Prove that our calculations are correct by calculating The End Amount (FV Amount). Formula: =FV(GeoMean,TotalPeriods,,-PV) 10) (11:06) Conclusion Download Excel File Not: After clicking on link, Use Ctrl + F (Find) and search for “Highline BI 348 Class” or for the file name as seen at the beginning of the video.