Variance, Mathematics

Assignment Help:

Variance

Consider the example of investment opportunities. The expected gains were Rs.114 and Rs.81 respectively. The fact is that an investor also looks at the dispersion before coming to a decision.

501_variance.png

The dispersion of opportunity 1 is far greater than that of opportunity 2. This might alarm the investor.

In this example, it might be worthwhile to compute the coefficient of variation.

For opportunity 1, this works out to be

= (42/114) x 100 = 36.84%

For opportunity 2, this works out to be

= (29.14/81) x 100  = 35.97%

The investor may regard both opportunities homogeneous in this regard and therefore find opportunity 1 more attractive (because of the higher expected returns).

 


Related Discussions:- Variance

Give an example of numerator and denominator, Give an example of Numerator ...

Give an example of Numerator and Denominator? Fractions represent parts of a whole object. Fractions are written using a horizontal line, with one number on top of the line and

Probability, One coin is tossed thrice. what will be the probability of get...

One coin is tossed thrice. what will be the probability of getting neither 3 heads nor 3 tails

ALgebra, Please quote me a price

Please quote me a price

Determine differential equation from direction field, Thus, just why do we ...

Thus, just why do we care regarding direction fields? Two nice pieces of information are there which can be readily determined from the direction field for a differential equation.

each player selects one of her two remaining chips , Consider the followin...

Consider the following parlor game to be played between two players. Each player begins with three chips: one red, one white, and one blue. Each chip can be used only once. To beg

6th grade, what is the length of a line segment with endpoints (-3,2) and (...

what is the length of a line segment with endpoints (-3,2) and (7,2)?

Trignometry, prove that sin A /cot A + cosec A = 2 + sinA / cot A - cosec A...

prove that sin A /cot A + cosec A = 2 + sinA / cot A - cosec A

Debate over answer to an equation..., The math equation is written exactly ...

The math equation is written exactly this way: 0+50x1-60-60x0+10=??? The answer I get is 10 and others say 0 0+50=50 50x1=50 50-60=-10 -10-60=-70 -70x0=0 0+10=10

Angles, in the quadrilateral abcd,ab is 4.3,bd is 5.1,ad is 4.8.angle bdc i...

in the quadrilateral abcd,ab is 4.3,bd is 5.1,ad is 4.8.angle bdc is 20 degrees and angle c is 80 degrees.all dimentions in metres.calculate the unknown sides and angles of the plo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd