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

Calculate the score of contestant on a tv game show, Danny is a contestant ...

Danny is a contestant on a TV game show. If he gets a question right, the points for that question are added to his score. If he gets a question wrong, the points for that question

Devision, how many times can u put 10000 into 999999

how many times can u put 10000 into 999999

Application of linear function, four times an unknown number is equal to tw...

four times an unknown number is equal to twice the sum of five and that unknown number

Describe graphing equations with a positive slope, Describe Graphing Equati...

Describe Graphing Equations with a Positive Slope? There are 3 steps to graphing a linear equation: 1. Identify and plot the y-intercept. 2. Determine the slope. Use the slope

Markup & markdown, if prices are calculatead with a 35% markup based on cos...

if prices are calculatead with a 35% markup based on cost,what is the percent that those prices should be marked down to get back to their original cost?Choose any convenient cost

Sketch the feasible region, Sketch the feasible region for the following se...

Sketch the feasible region for the following set of constraints: 3y - 2x  ≥ 0 y + 8x  ≤  53 y - 2x  ≤  2 x  ≥ 3. Then find the maximum and minimum values of the objective

Sketch the direction field for the differential equation, Sketch the direct...

Sketch the direction field for the subsequent differential equation. Draw the set of integral curves for this differential equation. Find out how the solutions behave as t → ∞ and

Law of Sine and Cosine Word Problems, A poll tilts towards the sun at an 8 ...

A poll tilts towards the sun at an 8 o angle from the vertical at it casta 22-ft shadow. The angle of elevation from the shadow to the top of the pole is 43 o . How tall is th

Ratios, in a veggie mix the ratio of cups of carrots to cups of broccolie i...

in a veggie mix the ratio of cups of carrots to cups of broccolie is 4 to 5 if you made this party mix larger how many cups of carrots would be needed to mix with fo cups of brocco

Explain pie charts, Explain Pie Charts ? If the frequencies are writte...

Explain Pie Charts ? If the frequencies are written as percentages, they can be easily compared using a pie chart. The following is an example of a pie chart using the data fr

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