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

Fractions, what is the lowest term of 11/121

what is the lowest term of 11/121

Calculate zeros in the denominator of rational expressions, About Zeros in ...

About Zeros in the Denominator of Rational Expressions One thing that you must be careful about when working with rational expressions is that the denominator can never be zero

Define a hamilton path, Define a Hamilton path. Determine if the following ...

Define a Hamilton path. Determine if the following graph has a Hamilton circuit. Ans: A path is known as a Hamiltonian path if it consists of every vertex of the graph e

Area and perimeter, a garden is constructed with a 3ft patio all around how...

a garden is constructed with a 3ft patio all around how would you give the expression for the area of the garden, excluding the patio

Graph, Graph A graph G = (V, E) contains a (finite) set that is denote...

Graph A graph G = (V, E) contains a (finite) set that is denote by V, or by V(G) if one wishes to make clear which graph is under consideration, and a collection E, or E(G), o

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

Commercial maths, if 500kg of food lasts 40 days for 30 men.how many men wi...

if 500kg of food lasts 40 days for 30 men.how many men will consume 675kg of food in 45 days.

Evaluate the perimeter of the plot of land, Evaluate the perimeter of the p...

Evaluate the perimeter of the plot of land. a. 260 m b. 340 m c. 360 m d. 320 m To evaluate the perimeter, we must know the length of all sides. According to the dia

Second order differential equation, Write the subsequent 2nd order differen...

Write the subsequent 2nd order differential equation as a system of first order, linear differential equations. 2 y′′ - 5 y′ + y = 0  y (3) = 6  y′ (3) = -1  We can wri

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