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

Differential equations, There isn't actually a whole lot to this section th...

There isn't actually a whole lot to this section this is mainly here thus we can get several basic concepts and definitions out of the way.  Most of the concepts and definitions in

Find the height of the lighthouse, Two  ships  are  sailing  in  the  sea  ...

Two  ships  are  sailing  in  the  sea  on  either  side  of  a  lighthouse;  the  angles  of depression of two ships as observed from the top of the lighthouse are 600  and 450 re

Mensuration, if area of a rectangle is 27 sqmtr and it perimeter is 24 m fi...

if area of a rectangle is 27 sqmtr and it perimeter is 24 m find the length and breath#

Translating word phrases into algebraic expressions, How do I solve this pr...

How do I solve this problem: Manuel is a cross-country runner for his school’s team. He jogged along the perimeter of a rectangular field at his school. The track is a rectangle th

Trivial solution of equation, Specified a system of equations, (1), we will...

Specified a system of equations, (1), we will have one of the three probabilities for the number of solutions. 1.   No solution. 2.   Accurately one solution. 3.   Infinit

Statistics Assignment, A. Design an investigation that details the followi...

A. Design an investigation that details the following six components:

Harmonic mean-arthmetic geometric progression, Harmonic mean It is a m...

Harmonic mean It is a measure of central tendency which is utilized to determine the average increase rates for natural economies. This is defined like the reciprocal of the a

Work Word Problems, Data entry is performed in 2-person teams. Each 2-perso...

Data entry is performed in 2-person teams. Each 2-person team can enter 520 surveys per day. A selection of 7540 surveys must be entered by day''s end. How many total employees, wo

What division means, WHAT DIVISION MEANS :  Ask any primary school teacher...

WHAT DIVISION MEANS :  Ask any primary school teacher which areas in arithmetic the children find very difficult. Division will probably top her list. This is not surprising. If y

Evaluate following limits at infinity, Evaluate following limits. ...

Evaluate following limits. Solution In this part what we have to note (using Fact 2 above) is that in the limit the exponent of the exponential does this, Henc

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