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

Trigonometry, I am really stuck on this topic and other topics its extremel...

I am really stuck on this topic and other topics its extremely difficult and I dont know what to do Im stressing out help me please.

Area and Perimeters, The top of the new rectangular Big Gig Thingamajig is ...

The top of the new rectangular Big Gig Thingamajig is 80 inches long and 62 inches wide. What is the top''s perimeter?

In sequence to remain the pole perpendicular to the ground, A cable is atta...

A cable is attached to a pole 24 ft above ground and fastened to a stake 10 ft from the base of the pole. In sequence to remain the pole perpendicular to the ground, how long is th

Types of infinity, TYPES OF INFINITY : Mostly the students have run across...

TYPES OF INFINITY : Mostly the students have run across infinity at several points in previous time to a calculus class. Though, when they have dealt along with this, this was jus

Find the maxima and minima - equal pi, 1) Find the maxima and minima of f(x...

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 ?eld F(x,y,z) = x^2I + y j +y k in moving

What is a mixed number, Q. What is a Mixed Number? Ans. A mixed nu...

Q. What is a Mixed Number? Ans. A mixed number is an integer, along with a fractional part, which has the same sign. (Therefore, a mixed number always has two parts.) M

Mixing problems, Let's start things by searching for a mixing problem.  Pre...

Let's start things by searching for a mixing problem.  Previously we saw these were back in the first order section. In those problems we had a tank of liquid with several kinds of

Explain combining negative signs in integers, Explain Combining Negative Si...

Explain Combining Negative Signs in integers? You've learned about positive and negative integers. BASICS :   When you place a negative sign in front of an integer, you get

Find the are length and sketch the level curves, 1) Find the are length of ...

1) Find the are length of r(t) = ( 1/2t^2, 1/3t^3, 1/3t^3) where t is between 1 and 3 (greater than or equal less than or equal) 2) Sketch the level curves of f(x,y) = x^2-2y^2

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