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

Solid mensuration, The two sides of a triangle are 17 cm and 28 cm long, an...

The two sides of a triangle are 17 cm and 28 cm long, and the length of the median drawn to the third side is equal to 19.5 cm. Find the distance from an endpoint of this median to

Limits-of-sum, limit 0 to 2(3x^2+2) Solution) integrate 3x^2 to x^3 and...

limit 0 to 2(3x^2+2) Solution) integrate 3x^2 to x^3 and 2 to 2x and apply the limit from 0 to 2 answer is 12.

Calculate the equation, Problem1: Find the general solution on -π/2 Dy/...

Problem1: Find the general solution on -π/2 Dy/dx +(tan x)y =(sin 2 x)y 4

Find the ways to choose a president and a secretary, Q. There are 10 studen...

Q. There are 10 students on the school debating team. How many different ways can the team choose a president and a secretary? Ans. There are 10 choices for the president

Addition and subtraction, In addition and subtraction we have discussed ...

In addition and subtraction we have discussed 1) Some ways of conveying the meaning of the operations of addition and subtraction to children. 2) The different models o

Find out the greater of two consecutive positive is 143, Find out the great...

Find out the greater of two consecutive positive odd integers whose product is 143. Let x = the lesser odd integer and let x + 2 = the greater odd integer. Because product is a

Find out the probability, A speaks truth in 80% of the cases and B speaks t...

A speaks truth in 80% of the cases and B speaks truth in 60% of the cases.  Find out the probability of the cases of which they are possible to contradict each other in stating sim

Correlation and regression, Correlation and Regression Correlation ...

Correlation and Regression Correlation CORRELATION is an important statistical concept which refers to association or interrelationship among variables. The reasons 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