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

Algebra, solve x+y= 7 and x-y =21

solve x+y= 7 and x-y =21

Applying quadratics math question, A boat tour company charges $11 for a ha...

A boat tour company charges $11 for a harbour tour and averages 450 passengers on Saturdays. Over the past few months, the company has been experimenting with the price of a tour a

Division of two like terms, Case 1: Suppose we have two terms 8ab and 4ab. ...

Case 1: Suppose we have two terms 8ab and 4ab. On dividing the first by the second we have 8ab/4ab = 2 or 4ab/8ab = (1/2) depending on whether we consider either 8ab or 4ab as the

Algebra2;, log6 X + log6 (x-5) = 1

log6 X + log6 (x-5) = 1

What is a mixed number, Q. What is a Mixed Number? Ans. A mixed nu...

Q. What is a Mixed Number? Ans. A mixed number is an integer, along with a fractional part, which has the same sign. (Therefore, a mixed number always has two parts.) M

Co-prime positive integers, A group of 5 people are going to meet weekly at...

A group of 5 people are going to meet weekly at the library for 4 weeks. Every week, two people are selected at random to speak. Every person may speak in multiple weeks, but no pa

Determine the position and nature of stationary points, Question. Deter...

Question. Determine the position and nature of stationary points of the function? f(x,y)= y/x -x 2 +y 2

What is the ratio of the areas of sectors , What is the ratio of the areas ...

What is the ratio of the areas of sectors I and II ?                               (Ans:4:5) Ans:    Ratio will be 120/360  Π r 2 : 150/360  Π r 2 4/12  : 5/12  =

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