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

Nonhomogeneous systems, We now require addressing nonhomogeneous systems in...

We now require addressing nonhomogeneous systems in brief. Both of the methods which we looked at back in the second order differential equations section can also be used now.  Sin

Product, a product can be anything including physical good,services,places,...

a product can be anything including physical good,services,places,experience,nations,organizations,properties,information.discuss the statement?

Triganometry, Ask question #Minimum 100 words what is the hypotunus of a r...

Ask question #Minimum 100 words what is the hypotunus of a right bangled triangle a=5@ b=25 find c accwhepted#

Division, Before taking up division of polynomials, let us acquaint...

Before taking up division of polynomials, let us acquaint ourselves with some basics. Suppose we are asked to divide 16 by 2. We know that on dividing 16 by

Explain english system in details, Explain English System in details? T...

Explain English System in details? There are three types of measurements that can be taken using the English System: length, distance, weight, and capacity. Length and dista

Pre calculus , use the point to generate a cosine function that models the ...

use the point to generate a cosine function that models the sound wave. Name the amplitude Name the period Name the phase shift name the vertical shift Write the equation for the

Constructions, Draw a line segment AB of length 4.4cm. Taking A as centre, ...

Draw a line segment AB of length 4.4cm. Taking A as centre, draw a circle of radius. 2cm and taking B as centre, draw another circle of radius 2.2cm. Construct tangents to each cir

Find out a vector that is orthogonal to the plane, A plane is illustrated b...

A plane is illustrated by any three points that are in the plane.  If a plane consists of the points P = (1, 0,0) , Q = (1,1,1) and R = (2, -1, 3) find out a vector that is orthogo

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