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

Expertes, how to do multiplication

how to do multiplication

0^0, what is the value of zero to the power raised to zero?

what is the value of zero to the power raised to zero?

Differntial equation, (3x+2)^2 d^2y/dx^2+3(3x+2)dy/dx-36y=3x^2+4x+1

(3x+2)^2 d^2y/dx^2+3(3x+2)dy/dx-36y=3x^2+4x+1

How many students are study physics alone, A class has 175 learners. The gi...

A class has 175 learners. The given table describes the number of learners studying one or more of the subsequent subjects in this case                 Subjects

Statistical inference, Statistical inference This is the process of dra...

Statistical inference This is the process of drawing conclusions about attributes of a population based upon information contained in a sample or taken from the population.

What are the three sides of a right triangle, What are the Three Sides of a...

What are the Three Sides of a Right Triangle? Each side of a right triangle can be labeled opposite, adjacent, or hypotenuse, based on its relationship to the right angle and o

Mechanical vibrations, This time we are going to take a look at an applicat...

This time we are going to take a look at an application of second order differential equations. It's now time take a look at mechanical vibrations. In exactly we are going to look

Stages of multiplication from the beginning, What is our aim when teaching ...

What is our aim when teaching children multiplication? Firstly they should be able to judge which situations they need to multiply in, and the numbers that are to be multiplied sec

Control a liner interpolation between original mesh, Use your keyboard to c...

Use your keyboard to control a linear interpolation between the original mesh and its planar target shape a. Each vertex vi has its original 3D coordinates pi and 2D coordinates

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