Answer:
the annual growth rate is 15.47 %
Step-by-step explanation:
Given the data in the question;
Internet users grew from 25.8 million to 70.6 million,
from the year 2009 to the year 2016.
Using geometric mean, Annual growth rate = ?
To determine the average growth rate of a time series using geometric mean, we use the following formula;
[tex]r_{geo[/tex] = [ [tex]([/tex] Xₙ / X₀ [tex])^{\frac{1}{n}[/tex] ] - 1
where Xₙ is the data value of the last year { 70.6 million }
X₀ is the data value for the first year { 25.8 million }
n is the sample size or the time difference, ( 2016 - 2009 = 7 )
so we substitute;
[tex]r_{geo[/tex] = [ [tex]([/tex] 70.6 / 25.8 [tex])^{\frac{1}{7}[/tex] ] - 1
[tex]r_{geo[/tex] = [ [tex]([/tex] 2.736434 [tex])^{\frac{1}{7}[/tex] ] - 1
[tex]r_{geo[/tex] = [ 1.15466 ] - 1
[tex]r_{geo[/tex] = 0.15466
[tex]r_{geo[/tex] = ( 0.15466 × 100 )%
[tex]r_{geo[/tex] = 15.47 %
Therefore, the annual growth rate is 15.47 %
