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

If t2+t+1=0 , t=w,w 2 L.H.S (w+w 2 ) + (w 2 + w) 2 ........  1  + 1 ....

t=w,w 2 L.H.S (w+w 2 ) + (w 2 + w) 2 ........  1  + 1 ..... But every third term is of the form: (w 3n +w 3n ) 2 =22 There are nine such terms. Their sum is 36. The rema

Listing method, how will you explain the listing method?

how will you explain the listing method?

Calculate the volume and surface area of a sphere, Calculate the volume and...

Calculate the volume and surface area of a sphere: Calculate the volume and surface area of a sphere with r = 4".  Be sure to include units in your answer. Solution: V

#tiword problem proportions, The scale of a map is 0.5 in 25mi the actua...

The scale of a map is 0.5 in 25mi the actual distance between two cities is 725mi write a proportion that represents the relationship how far apart will the cities be on the map

Factor , #Mai iss 3 years younger than twice the age of her brother . If b ...

#Mai iss 3 years younger than twice the age of her brother . If b represents the age of Mai''s brother .which expression below represents Mai''s age 2-3b 3-2b 2b-3 3b-2 2-3b 3-2b q

Sales Tax and Value added Tax, Dinesh bought an article for Rs. 374, which ...

Dinesh bought an article for Rs. 374, which included a discount of 15% on the marked price and a sales tax of 10% on the reduced price. Find the marked price of the article.

Find the distance of the journey, A train covered a certain distance at a u...

A train covered a certain distance at a uniform speed.  If the train would have been 6km/hr faster, it would have taken 4hours less than the scheduled time.   And if the train were

1 application of complex analysis in THERMODYNAMICS, Hi, this is EBADULLA ...

Hi, this is EBADULLA its about math assignment. 1 application of complex analysis used in thermodynamics. . what all uses are there in that... plz let mee know this answer.

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