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

#title.automotive cruise control system., What are some of the interestingm...

What are some of the interestingmodern developments in cruise control systems that contrast with comparatively basic old systems

Perimeter and Area, A farmer has a rectangular field of length 100m and bre...

A farmer has a rectangular field of length 100m and breadth 70m. He leaves a path of 1m all along the boundary inside it. He decides to apply a manure to the remaining part of the

If tana+sina=m and tana-sina=n, If tanA+sinA=m and tanA-sinA=n, show that m...

If tanA+sinA=m and tanA-sinA=n, show that m 2 -n 2 = 4√mn Ans:    TanA + SinA = m       TanA - SinA = n. m 2 -n 2 =4√mn . m 2 -n 2 = (TanA + SinA) 2 -(TanA - SinA) 2

Matrix of r, Let R be the relation on S = {1, 2, 3, 4, 5} defined by R =...

Let R be the relation on S = {1, 2, 3, 4, 5} defined by R = {(1,3); (1, 1); (3, 1); (1, 2); (3, 3); (4, 4)}. (b) Write down the matrix of R. (c) Draw the digraph of R.

Ratios, What is the ratio of the cone''s volume to the cylinder''s volume

What is the ratio of the cone''s volume to the cylinder''s volume

Satistics, I have about 6 Statistics questions, can anyone help me?

I have about 6 Statistics questions, can anyone help me?

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