Hello everyone, Can someone give me a definition of downward bias? Thank you
A calculation that tends to give a lower result than others methods. For example: 10%, 12%, -5%, 8% Arithmetic Mean: 6.25% Geometric Mean: 6.03% The geometric mean will always be equal to or less than the arithmetic mean. Thus it exhibits a downward bias. This is just one example.
nice, thank you very much.