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

Using a number strip substract , Another aid that can help children pract...

Another aid that can help children practise subtraction is the number strip. TGS can be used to improve their ability to count backwards. For example, subtracting 4 from 9 means

Explain what is symmetry in maths, Symmetry Definition : A line of sy...

Symmetry Definition : A line of symmetry divides a set of points into two halves, each being a reflection of the other. Each image point is also a point of the set. Defin

Limits, Limits The concept of a limit is fundamental in calculus....

Limits The concept of a limit is fundamental in calculus. Often, we are interested to know the behavior of f(x) as the independent variable x approaches some

Which general famously stated ''i shall return'', Which general famously st...

Which general famously stated 'I shall return'? A. Bull Halsey B. George Patton C. Douglas MacArthur D. Omar Bradley

Area and Perimeters, The top of the new rectangular Big Gig Thingamajig is ...

The top of the new rectangular Big Gig Thingamajig is 80 inches long and 62 inches wide. What is the top''s perimeter?

Determine principal strains and direction , A 100 by 150 mm rectangular pla...

A 100 by 150 mm rectangular plate is deformed as shown in the following figure. All dimensions shown in the figure are in millimeters.  Determine at point Q: (a) the strain compone

Differentiate inside function in chain rule, Differentiate following. f ...

Differentiate following. f ( x ) = sin (3x 2   + x ) Solution It looks as the outside function is the sine & the inside function is 3x 2 +x. The derivative is then.

Solve-|x2-5x+4/x2-4|

x^2-5x+4 can written in roots as (x-1)*(x-4) x^2-4 can be written interms of (x-2)(x+2).so [(x-1)(x-4)/(x-2)(x+2)]

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