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

Probability, The probability that a leap year will have 53 sunday is ? and ...

The probability that a leap year will have 53 sunday is ? and how please explain it ? (a)1/7    (b) 2/7    (c) 5/7    (d)6/7 Sol) A leap year has 366 days, therefore 52 weeks i.e

Describe the properties of inequalities, Describe the Properties of Inequal...

Describe the Properties of Inequalities ? Postulate In comparing two quantities, say a and b, there are exactly three possibilities. (1) a is less than b. (a b)

Ascending order, arrange these numbers in ascending order. -5 -7 1 2 15 0 -...

arrange these numbers in ascending order. -5 -7 1 2 15 0 - 25

Angles, how do you workout the value of the missing angle

how do you workout the value of the missing angle

Show that af+bd+ce=ae+bf+cd= 1/2 , In figure, the incircle of triangle ABC...

In figure, the incircle of triangle ABC touches the sides BC, CA, and AB at D, E, and F respectively. Show that AF+BD+CE=AE+BF+CD= 1/2   (perimeter of triangle ABC), Ans:

Determine the range of given algorithm, The division algorithm says that wh...

The division algorithm says that when a is divided by b, a unique quotient and remainder is obtained. For a fixed integer b where b ≥ 2, consider the function f : Z → Z given by f(

Minimax regret method -decision making under uncertainty, MINIMAX regret me...

MINIMAX regret method Minimax method assumes that the decision maker will experience 'regret' after he has made the decision and the events have happened. The decision maker ch

Solution of rectilinear figures, A tower and a monument stand on a level pl...

A tower and a monument stand on a level plane. the angles of depression on top and bottom of the monument viewed from the top of the tower are 13 degrees and 31 degrees, respective

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