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

Tower of hanoi, how to create an activity of tower of hanoi

how to create an activity of tower of hanoi

Product moment coefficient (r), Product Moment Coefficient (r) ...

Product Moment Coefficient (r) This gives an indication of the strength of the linear relationship among two variables.                                     N

How much did kara pay in interest, Kara borrowed $3,650 for one year at an ...

Kara borrowed $3,650 for one year at an annual interest rate of 16%. How much did Kara pay in interest? To ?nd out 16% of $3,650, multiply $3,650 through the decimal equivalent

How many permutations can you make of the word statistics, Q. How many perm...

Q. How many permutations can you make of the word STATISTICS? Solution:  There are 10 letters in the word STATISTICS, i.e. n=10. Three of them are S's, so n 1 =3, three are T'

Solve the value of x and y , 7(y + 3) - 2(x + 2) = 14, 4 (y - 2) + 3(x ...

7(y + 3) - 2(x + 2) = 14, 4 (y - 2) + 3(x - 3) = 2 Ans:    7(y + 3) - 2 (x+ 2) = 14          --------- (1) 4(y- 2) + 3(x - 3) = 2 ----------(2) From (1) 7y +21 -

Decimals, how will the decimal point move when 245.398 is multiplied by 10

how will the decimal point move when 245.398 is multiplied by 10

External division of section formula, give me the derivation of external di...

give me the derivation of external division of sectional formula using vectors

How many walkers got a ride school from their parents today, In Daniel's fi...

In Daniel's fifth grade class, 37.5% of the 24 students walk to school. One third of the walkers got a ride to school presently from their parents. How many walkers got a ride to s

Idk, Are you suppose to divide the 1 or subtract

Are you suppose to divide the 1 or subtract

Properties of t distribution, Properties of t distribution 1. The t di...

Properties of t distribution 1. The t distribution ranges from - ∞ to ∞ first as does the general distribution 2. The t distribution as the standard general distribution is

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