Averaging percentages

Question

How do you find the average for 3 percentages?

Answer 1

I think you are looking for the Geometric Mean. For example, If your Investment made 20% then lost 10% then made 5% You might think you made 5%.

But you will have made (1+20%)(1-10%)(1+5%) = 1.134. the Cube root of 1.134 is 1.0428 so your investment compounded at 4.28%

Answer 2

Finding average means finding the mean of a given data sample. If you are given 3 percentages, the first thing you do is to add them up. Next, divide by 3

For example, if you are given the following percentages; 5% , 9% , 2%

Their average would be = (5+ 9 + 2) / 3 = 5.33 , then you write it as 5.33%

Another way to do it is to convert the percentages into decimals first then find their averages and reconvert the answer to percentage. Using the same example, it would be;

= (0.05 + 0.09 + 0.02 )/ 3

= 0.16 / 3

= 0.0533

To convert it back to a percentage, you multiply by 100 to get 0.0533 * 100 = 5.33%