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

Recognize the intervals for function h ( x ) = 3x5 - 5x3 + 3, For the given...

For the given function recognize the intervals where the function is increasing and decreasing and the intervals where the function is concave up & concave down. Utilizes this info

Rounding whole numbers, Rounding whole numbers List the order in which ...

Rounding whole numbers List the order in which nancy, amy, ethel and cindy line up in single file to board the school bus. Then match the girls with their heights, which are fo

How to converting scientific notation to standard notation , How to Convert...

How to Converting Scientific Notation to Standard Notation ? To change a number in scientific notation to standard notation, move the decimal point the same number of places as

Limits-of-sum, limit 0 to 2(3x^2+2) Solution) integrate 3x^2 to x^3 and...

limit 0 to 2(3x^2+2) Solution) integrate 3x^2 to x^3 and 2 to 2x and apply the limit from 0 to 2 answer is 12.

Percentage, A person spent 12.5% of his money and then rs.1600 and then 40%...

A person spent 12.5% of his money and then rs.1600 and then 40% of the remaining,now left rs.960 with him.What is his original money?

Trigonometry, Ashow that sec^2x+cosec^2x cannot be less than 4

Ashow that sec^2x+cosec^2x cannot be less than 4

Inverse cosine, Inverse Cosine : Now see at inverse cosine.  Following is ...

Inverse Cosine : Now see at inverse cosine.  Following is the definition for the inverse cosine.                         y = cos -1 x       ⇔ cos y = x                   for

integration: if f(x)+f(x+1/2) =1 find limit 0 to 2, f(x)+f(x+1/2) =1 f(x...

f(x)+f(x+1/2) =1 f(x)=1-f(x+1/2) 0∫2f(x)dx=0∫21-f(x+1/2)dx 0∫2f(x)dx=2-0∫2f(x+1/2)dx take (x+1/2)=v dx=dv 0∫2f(v)dv=2-0∫2f(v)dv 2(0∫2f(v)dv)=2 0∫2f(v)dv=1 0∫2f(x)dx=1

Proof by Condratiction, "Prove by contradiction that no root of the equatio...

"Prove by contradiction that no root of the equation x^18 -2x^13 + x^5 -3x^3 + x - 2 = 0 is an integer divisible by 3" Any help would be very much appreciated!

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