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

Area with parametric equations - polar coordinates, Area with Parametric Eq...

Area with Parametric Equations In this section we will find out a formula for ascertaining the area under a parametric curve specified by the parametric equations, x = f (t)

Equations, At a bakery the cost of 30 experts is 45$. Write an equation tha...

At a bakery the cost of 30 experts is 45$. Write an equation that shows the cost of 45 cookies

Geometry, calculate the area of a trapezoid with height 8cm base 18cm and 9...

calculate the area of a trapezoid with height 8cm base 18cm and 9cm

Find the value of ((a+b)/(a-b)) , If arg (a/b) = pi/2, then find the value ...

If arg (a/b) = pi/2, then find the value of ((a+b)/(a-b)) where a,b are complex numbers. Ans) Arg (a/b) =Pi/2 Tan-1   (a/b)=   Pi/2 A/B = tanP/2 ,therefore a/b=infinity.

Determine the equation of the tangent line, Determine the equation of the t...

Determine the equation of the tangent line to r = 3 + 8 sinθ at θ = Π/6. Solution We'll first need the subsequent derivative. dr/dθ = 8 cosθ The formula for the deriv

Math, how do you do algebra in 4th grade

how do you do algebra in 4th grade

Calculate the number-average and weight-average molar mass, Three mixtures ...

Three mixtures were prepared with very narrow molar mass distribution polyisoprenesamples with molar masses of 8000, 25,000, and 100,000 as indicated below. (a) Equal numbers of

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