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

Please help me solve these Problems step by step, What angle (to the neares...

What angle (to the nearest degree) corresponds to the cos 0.6 or what is cos-1(0.6)? (Note: Use Appendix I) What angle (to the nearest degree) corresponds to the sin 0.6 or what

Rate -categories of multiplication, Rate - when we know how many objects...

Rate - when we know how many objects are in a set, and need to find out the total number in several copies of that set. (e.g., if a child uses 4 copybooks in a year, how many co

What is the area of the court in square feet, A racquetball court is 40 ft ...

A racquetball court is 40 ft through 20 ft. What is the area of the court in square feet? The area of a rectangle is length times width. Thus, the area of the racquetball court

What is his test average, Steve earned a 96 percent on his ?rst math test, ...

Steve earned a 96 percent on his ?rst math test, a 74% on his second test, and an 85 percent on his third test. What is his test average? Add the test grades (96 + 74 + 85 = 25

Example of integrals involving trig functions, Example of Integrals Involvi...

Example of Integrals Involving Trig Functions Example: Estimate the following integral. ∫ sin 5 x dx Solution This integral no longer contains the cosine in it that

Fractions, how can I compare fractions with unlike denominators?

how can I compare fractions with unlike denominators?

Trignometry, i have to get 10 points in 10th class

i have to get 10 points in 10th class

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