Question

JetBlue Airways is an American low-cost airline headquartered in New York City. Its main base is John F. Kennedy International Airport. JetBlue’s revenue in 2002 was $635.2 million. By 2017, revenue increased to $7,015.0 million. What was the geometric mean annual increase for the period?

Answer 1

To find the geometric mean annual increase, use the formula (Final value / Initial value) ^ (1 / Number of years) - 1. Plug in the given values: initial value is $635.2 million, final value is $7,015.0 million, and number of years is 15. Calculate the expression to find the geometric mean annual increase.

Step-by-step explanation:

To find the geometric mean annual increase, we need to use the formula:

Geometric mean = (Final value / Initial value) ^ (1 / Number of years) - 1

Using the given information, the initial value is $635.2 million, the final value is $7,015.0 million, and the number of years is 15 (2017 - 2002). Plugging these values into the formula, we get:

Geometric mean = ($7,015.0 million / $635.2 million) ^ (1 / 15) - 1

Calculating this expression will give us the geometric mean annual increase for the period.