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

Probability, Ratio of successes in 5 independent trials to the probability ...

Ratio of successes in 5 independent trials to the probability of successes in two independent trials is 1/4. What is the probability of 4 successes in 6 independent trials?

Statistics, find the number of ways 17 employees can b chosen from 327

find the number of ways 17 employees can b chosen from 327

Equations, At a bakery the cost of 30 experts is 45$. Write an equation tha...

At a bakery the cost of 30 experts is 45$. Write an equation that shows the cost of 45 cookies

How many cubic yards of concrete are required, A concrete retaining wall is...

A concrete retaining wall is 120 feet long with ends shaped as given. How many cubic yards of concrete are required to construct the wall? a. 217.8 yd 3 b. 5,880 yd 3

Millie purchased six bottles of soda how much she pay, Millie purchased six...

Millie purchased six bottles of soda at $1.15 each. How much did she pay? To ?nd out the total cost of six bottles, you must multiply the cost per bottle through 6; $1.15 × 6 =

Circles, If the distances from origin of the centres of 3 circles x 2 +y 2 ...

If the distances from origin of the centres of 3 circles x 2 +y 2 +2alphaix= a 2 (i=1,2,3) are in G.P. , then length of the tangents drawn to them frm any point on the circles x2+

Find the area of the shaded region of square, In the adjoining figure, ABCD...

In the adjoining figure, ABCD is a square of side 6cm.  Find the area of the shaded region. Ans:    From P draw PQ ⊥ AB AQ = QB = 3cm (Ans: 34.428 sq cm) Join PB

General approach of exponential functions, General approach of Exponential ...

General approach of Exponential Functions : Before getting to this function let's take a much more general approach to things. Let's begin with b = 0 , b ≠ 1. Then an exponential f

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