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

Domain of a vector function - three dimensional space, Domain of a Vector F...

Domain of a Vector Function There is a Vector function of a single variable in R 2 and R 3 have the form, r → (t) = {f (t), g(t)} r → (t) = {f (t) , g(t), h(t)} co

Analytical geometry, convert the equation 4x^2+4y^2-4x-12y+1=0 to standard ...

convert the equation 4x^2+4y^2-4x-12y+1=0 to standard form and determine the center and radius of the circle. sketch the graph.

Measurements, 2feet wide and 12 feet long.tile is 2feet wide and 1.5feet lo...

2feet wide and 12 feet long.tile is 2feet wide and 1.5feet long.how many tiles do I need

Find the original average of boys and girls in the class, When 6 boys were ...

When 6 boys were admitted & 6 girls left the percentage of boys increased from 60% to 75%. Find the original no. of boys and girls in the class. Ans: Let the no. of Boys be x

Determine the optimal strategy, On a picnic outing, 2 two-person teams are ...

On a picnic outing, 2 two-person teams are playing hide-and-seek. There are four hiding locations (A, B, C, and D), and the two peoples of the hiding team can hideseparately in any

Permuation and combination, how many words can be formed from letters of wo...

how many words can be formed from letters of word daughter such that each word contain 2vowles and 3consonant

How high is a structure, One method of calculating the height of an object ...

One method of calculating the height of an object is to place a mirror on the ground and then position yourself so that the top of the object will be seen in the mirror. How high i

The index of industrial production, The index of industrial production ...

The index of industrial production This is a quantity index compiled by the government. This measures changes in the volume of production in main industries. The index is a ex

Explain simplifying rational expressions, Explain Simplifying Rational Expr...

Explain Simplifying Rational Expressions ? A rational expression, or algebraic fraction, is an expression in which you have a polynomial divided by a polynomial. Sometimes it

Finding the LCM, what is the LCM of 18, 56 and 104 show working

what is the LCM of 18, 56 and 104 show working

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