Choose the incorrect statement. a We use arithmetic average to summarize historical simple interests. b We...

Choose the incorrect statement.

a We use arithmetic average to summarize historical simple interests.

b We use geometric average to summarize historical discrete compounding interests.

c We use geometric average to forecast future discrete compounding interests.

d None of the above is incorrect.

Expert Solution

Option C is answer as it is incorrect

We use geometric average to forecast future discrete compounding interests.

Geometric and Arithmetic average are used to find historical average rates, not to predict future rates

jeff jeffy answered 2 years ago

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