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by ayhanfuat
397 days ago
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There is definitely no single magical number that can perfectly represent an entire set of numbers. There will always be some cases they are not representative enough. In the request example you are mostly interested in the total processing times so it does make sense you use a metric based on addition. But you could also frame a similar scenario where halving the processing time lets you handle twice as many items in the same duration. In that case a ratio-based or multiplicative view might be more appropriate. |
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What we’re handling is the case where you have split outcomes — and there the arithmetic and geometric mean disagree, so we can ask which better reflects reality.
I’m not saying the geometric mean is always wrong — but it is in this case.
A case where it makes sense is what happens when your stock halves in value then doubles in value?
In general, geometric mean is appropriate where effects are compounding (eg, two price changes to the same stock) but not when we’re combining (requests are handled differently). Two benchmarks is more combining (do task A then task B), rather than compounding.