In mathematics, the inequality of arithmetic and geometric means, or more briefly the AM–GM inequality, states that the arithmetic mean of a list of non-negative real numbers is greater than or equal to the geometric mean of the same list; and further, that the two means are equal if and only if every number in the list is the same.
The simplest non-trivial case — i.e., with more than one variable — for two non-negative numbers x and y, is the statement that
with equality if and only if x = y. This case can be seen from the fact that the square of a real number is always non-negative (greater than or equal to zero) and from the elementary case (a ± b)2 = a2 ± 2ab + b2 of the binomial formula:
In other words (x + y)2 ≥ 4xy, with equality precisely when (x − y)2 = 0, i.e. x = y.
For a geometrical interpretation, consider a rectangle with sides of length x and y, hence it has perimeter 2x + 2y and area xy. Similarly, a square with all sides of length √xy has the perimeter 4√xy and the same area as the rectangle. The simplest non-trivial case of the AM–GM inequality implies for the perimeters that 2x + 2y ≥ 4√xy and that only the square has the smallest perimeter amongst all rectangles of equal area.