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

Triangle inequalities, poa is a straight line in circle,wher o is center of...

poa is a straight line in circle,wher o is center of circle,b is any pointjoined with p.prove that pa>pb

Matrices, suppose you a business owner and selling cloth. the following rep...

suppose you a business owner and selling cloth. the following represents the number of items sold and the cost for each item. use matrix operation to determine the total revenue ov

Evaluate limit, Evaluate the given limit. Solution: In this quest...

Evaluate the given limit. Solution: In this question none of the earlier examples can help us. There's no factoring or simplifying to accomplish.  We can't rationalize &

What did she pay per pound, Mona purchased one and a half pounds of turkey ...

Mona purchased one and a half pounds of turkey at the deli for $6.90. What did she pay per pound? Divide the cost of the turkey by the weight; $6.90 ÷ 1.5 = $4.60.

Magnitude - vector, Magnitude - Vector The magnitude, or length, of th...

Magnitude - Vector The magnitude, or length, of the vector v → = (a1, a2, a3) is given by, ||v → || = √(a 1 2 + a 2 2 + a 2 3 ) Example of Magnitude Illus

Precalculus, Find the standard form of the equation of the parabola with a ...

Find the standard form of the equation of the parabola with a vertex at the origin and a focus at (0, -7).

Find out general formula for tangent vector and unit vector, Find out the g...

Find out the general formula for the tangent vector and unit tangent vector to the curve specified by r → (t) = t 2 i → + 2 sin t j → + 2 cos t k → . Solution First,

Find a common factor of the numerator and denominator, Q. Find a common fac...

Q. Find a common factor of the numerator and denominator? Ans. There's only one key step to simplifying (or reducing) fractions: find a common factor of the numerator and

Estimate percent of the original price will the customer pay, Bikes are on ...

Bikes are on sale for 30% off the original price. What percent of the original price will the customer pay if he gets the bike at the sale price? The original price of the bike

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