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

Helping children learn mathematics, Here we have focussed on how mathematic...

Here we have focussed on how mathematics learning can be made meaningful for primary school children. We have done this through examples of how children learn and how we can create

College Algebra, I am looking for a tutor in College Algebra

I am looking for a tutor in College Algebra

Sample space, Sample Space is the totality of all possible out...

Sample Space is the totality of all possible outcomes of an experiment. Hence if the experiment was inspecting a light bulb, the only possible outcomes

Neuro marketing, Does neuro marketing give impetus to new consumer behavio...

Does neuro marketing give impetus to new consumer behaviour

Determine how maximum revenue with transportation model, The government is...

The government is auctioning off oil leases at two sites. At each site, 100,000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes and Alexis Pickens are bidding for the

Find out the determinant, Find out the determinant: Find out the deter...

Find out the determinant: Find out the determinant of the following 3 x 3 matrix, expanding about row 1. Solution:

How many types of integer operatiions explain, How many types of Integer Op...

How many types of Integer Operatiions explain? Adding Integers The rules for adding integers are: 1. A positive number plus a positive number equals the sum of the two pos

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