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

Algebra2;, log6 X + log6 (x-5) = 1

log6 X + log6 (x-5) = 1

Ratio, ther are 162 student in a school.20 of them are girls .how many are ...

ther are 162 student in a school.20 of them are girls .how many are boy

Problem on numbers, # In a two-digit, if it is known that its unit''s digi...

# In a two-digit, if it is known that its unit''s digit exceeds its ten''s digit by 2 and that the product of the given number and the sum of its digits is equal to 144, then the

Spring force, Spring, F s We are going to suppose that Hooke's Law wil...

Spring, F s We are going to suppose that Hooke's Law will govern the force as the spring exerts on the object. This force will all the time be present suitably and is F s

How far did the ?rst arrow goes, From a fixed point directly in front of th...

From a fixed point directly in front of the center of a bull's eye, Kim aims two arrows at the bull's eye. The first arrow nicks one point on the edge of the bull's eye; the second

Describe the laws of sines, Q. Describe the Laws of Sines? Ans. Up...

Q. Describe the Laws of Sines? Ans. Up to now we have dealt exclusively with right triangles.  The Law of Sines and the Law of Cosines are used to solve  oblique triangles

Calculus, I need help with my calculus work

I need help with my calculus work

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