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

Curvature - three dimensional space, Curvature - Three Dimensional Space ...

Curvature - Three Dimensional Space In this part we want to briefly discuss the curvature of a smooth curve (remind that for a smooth curve we require → r′ (t) is continuou

Evaluate the rational exponents, Evaluate each of the following.  (a) 2...

Evaluate each of the following.  (a) 25 1/2  (b) 32 1/5 Solution  (a) 25 1/2 Thus, here is what we are asking in this problem.                             2

Ratio, ther are 162 student in a school.20 of them are girls .how many are ...

ther are 162 student in a school.20 of them are girls .how many are boy

How to find total no. of unordered pairs , How to find total no. of unorder...

How to find total no. of unordered pairs of disjoint subsets of a finite set? Solution) Suppose A and B are two such disjoint subsets of the set S. Then every element can go into

Probability, Mike sells on the average 15 newspapers per week (Monday – Fri...

Mike sells on the average 15 newspapers per week (Monday – Friday). Find the probability that 2.1 In a given week he will sell all the newspapers [7] 2.2 In a given day he will

First and second order derivative, Solution : We'll require the first and s...

Solution : We'll require the first and second derivative to do that. y'(x) = -3/2x -5/2                                     y''(x) = 15/4x -7/2 Plug these and also the funct

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