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

Linear algebra, solve for k such that the system 4x+ky=6 kx+y=-3

solve for k such that the system 4x+ky=6 kx+y=-3

Scientific notation, kikos toy company boasts that their remotes have the g...

kikos toy company boasts that their remotes have the greatest range . their claim is that you can access their signal up to 1320 feet from their device . a competing company, yozzo

How to grow your brand with existing customers., "To grow your brand, you n...

"To grow your brand, you need to encourage your existing customers to buy your product a liitle more often. It is far more important to maximise the number of times your buyers buy

Convert the points into cartesian and polar coordinates, Convert each of th...

Convert each of the following points into the specified coordinate system.  (a) (-4, 2 Π /3) into Cartesian coordinates. (b) (-1,-1) into polar coordinates.  Solution

Fractions, how do I solve 14/27 - 23/27 =

how do I solve 14/27 - 23/27 =

Integrals involving trig functions - integration techniques, Integrals Invo...

Integrals Involving Trig Functions - Integration techniques In this part we are going to come across at quite a few integrals that are including trig functions and few metho

Regression - measures of relationships, Regression - Measures of Relationsh...

Regression - Measures of Relationships - It is a concept that refers to the changes which happen in the dependent variable as a result of changes happens on the independent va

Determine the angle between dec, Using the example provided below, if the m...

Using the example provided below, if the measure ∠AEB = 5x + 40 and ∠BEC = x + 20, determine m∠DEC. a. 40° b. 25° c. 140° d. 65° c. The addition of the measurem

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