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

Describe a business, a. Write an exponential function that could model the ...

a. Write an exponential function that could model the information in this graph.   b. Describe a business, scientific (not mathematical), or economic situation for what thi

Estimate the distance to this star, To find the distance to nearby stars, t...

To find the distance to nearby stars, the method of parallax is used. The idea is to find a triangle with the star at one vertex and with a base as large as possible. To do this, t

Determines the angles of depression, A pilot is flying over a straight leng...

A pilot is flying over a straight length of road. He determines the angles of depression of two mileposts, 5 miles apart, to be 32° and 48°. a) Find the distance of the plane f

Find the 14th term in the arithmetic sequence. 60, Find the 14th term in t...

Find the 14th term in the arithmetic sequence. 60, 68, 76, 84, 92

Find a quadratic polynomial having a and ß, If α,β are the zeros of a Quadr...

If α,β are the zeros of a Quadratic polynomial such that α + β = 24, α - β = 8. Find a Quadratic polynomial having α and β as its zeros.

Combined mean and standard deviation -illustration, Combined mean Assu...

Combined mean Assume m be the combined mean Assume x 1 be the mean of first sample Assume x 2 be the mean of the second sample Assume n 1 be the size of the 1 st

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