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The geometric mean is the preferred type of mean for averaging ratios that can be expressed as fractions or percentages. This is because the geometric mean effectively accounts for the multiplicative nature of ratios, making it particularly useful in situations where the data involves percentages or fractional values.

When calculating the average of ratios, variations in the values can be disproportionately impactful when using the arithmetic mean. In contrast, the harmonic mean and the median are not as suited for this specific purpose. The harmonic mean is best utilized for rates or fractions that are related to time, and the median is simply the middle value in a sorted list, which does not necessarily provide a true average of proportions.

Using the geometric mean allows for a more accurate representation of central tendency in datasets involving ratios because it considers the relative scaling of the values. The formula for the geometric mean involves multiplying the values together and then taking the nth root, which ensures that each value contributes equally to the final result, regardless of their individual ranges. This stability in ratios, especially when there are extreme values, enhances the reliability of the outcome when averaging percentages or fractions.