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

Find the maxima or minima and green theorem, 1) find the maxima and minima ...

1) find the maxima and minima of f(x,y,z) = 2x + y -3z subject to the constraint 2x^2+y^2+2z^2=1 2)compute the work done by the force field F(x,y,z) = x^2I + y j +y k in moving

Trigonomitry, Ask if tanA+sinA=m and m^2-n^2=4 rute mn show that tanA-sinA=...

Ask if tanA+sinA=m and m^2-n^2=4 rute mn show that tanA-sinA=n

Differential equations, Find the normalized differential equation which has...

Find the normalized differential equation which has {x, xex} as its fundamental set

speed of the truck , A man travels 600km partly by train and partly by tru...

A man travels 600km partly by train and partly by truck. If he  covers 120km by train and the rest by truck, it takes him eight hours. But, if he travels 200km by train and the res

Geometry, prove angle MJL is congruent to angle KNL

prove angle MJL is congruent to angle KNL

Inequation, Solve the inequation: |x|

Solve the inequation: |x|

Estimating sums, round to the nearest ten to estimate , 422+296

round to the nearest ten to estimate , 422+296

Complex number, The points A,B,C and D represent the numbers Z1,Z2,Z3 and Z...

The points A,B,C and D represent the numbers Z1,Z2,Z3 and Z4.ABCD is rhombus;AC=2BD.if  Z2=2+i ,Z4=1-2i,find Z1 and Z3 Ans) B(2,1) , D(1,-2) Mid Point (3/2,-1/2) Write Equati

Find the coordinates of c , Plot the points A(2,0) and B (6,0) on a graph p...

Plot the points A(2,0) and B (6,0) on a graph paper. Complete an equilateral triangle ABC such that the ordinate of C be a positive real number .Find the coordinates of C   (Ans: (

Integral test- harmonic series, Integral Test- Harmonic Series In ha...

Integral Test- Harmonic Series In harmonic series discussion we said that the harmonic series was a divergent series.  It is now time to demonstrate that statement.  This pr

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