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

Find the length of the parallelogram, The perimeter of a parallelogram is 5...

The perimeter of a parallelogram is 50 cm. The length of the parallelogram is 5 cm more than the width. Find the length of the parallelogram. Let w = the width of the parallelo

Solid geometry, what is solid geometry and uses of solid geometry

what is solid geometry and uses of solid geometry

Calculate the profit of company, Company A and Company B have spent a lot o...

Company A and Company B have spent a lot of money on research to develop a cure for the common cold. Winter is approaching and there is certainly going to be a lot of demand for th

Applied mathematics, I have a journal article in applied mathematics and wa...

I have a journal article in applied mathematics and want to analyze the solutions step by step. Is there anyone specialize in this file?

Draw the state diagram - transition function, 1. Let M be the PDA with stat...

1. Let M be the PDA with states Q = {q0, q1, and q2}, final states F = {q1, q2} and transition function δ(q0, a, λ) = {[q0, A]} δ(q0, λ , λ) = {[q1, λ]} δ(q0, b, A) = {[q2

Compare and contrast african immigrants, Compare and contrast African immig...

Compare and contrast African immigrants with our immigrant groups? How are they different? What are the implications of these differences for their adjustment to the larger society

Illustrate exponential distribution, Q. Illustrate Exponential Distribution...

Q. Illustrate Exponential Distribution? Ans. These are two examples of events that have an exponential distribution: The length of time you wait at a bus stop for the n

Proof of: limq -0 sinq/q = 1 trig limits, Proof of: lim q →0 sin q...

Proof of: lim q →0 sin q / q = 1 This proofs of given limit uses the Squeeze Theorem. Though, getting things set up to utilize the Squeeze Theorem can be a somewha

What was the original price of the coat before tax, Nick paid $68.25 for a ...

Nick paid $68.25 for a coat, including sales tax of 5%. What was the original price of the coat before tax? Since 5% sales tax was added to the cost of the coat, $68.25 is 105%

Find out equation is a function, Example: Find out which of the following ...

Example: Find out which of the following equations functions are & which are not functions.                            y= 5x + 1 Solution The "working" definition of fu

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