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

Calculate the probability - contingency table, 1) A survey was done where a...

1) A survey was done where a random sample of people 18 and over were asked if they preferred comedies, dramas, or neither. The information gathered was broken down by age group an

Application of probability in business, Application of Probability in Busin...

Application of Probability in Business 1. Business games of chance for illustration, Raffles Lotteries. 2. Insurance firms: this is generally done when a new client or prop

Pre kg, my daughter in kg now how can i train her to develop skills in unde...

my daughter in kg now how can i train her to develop skills in undertanding the basics of all subjects how can i start teaching other than schol

Markup & markdown, if prices are calculatead with a 35% markup based on cos...

if prices are calculatead with a 35% markup based on cost,what is the percent that those prices should be marked down to get back to their original cost?Choose any convenient cost

Find the middle term of the arithmetic progressions, Find the middle term o...

Find the middle term of the AP 1, 8, 15....505. A ns:    Middle terms a + (n-1)d = 505 a + (n-1)7 = 505 n - 1 = 504/7 n = 73 ∴ 37th term is middle term a 37

Determine the widest piece of mail, A mailbox opening is 4.5 inches high an...

A mailbox opening is 4.5 inches high and 5 inches wide. Determine the widest piece of mail able to ?t in the mailbox without bending? a. 9.5 inches b. 2.2 inches c. 6.7 in

Logarithems , y=x4/4lnx-x4/16 then dy/dx=? Solution) dy/dx=-x^3/4(2/lnx-...

y=x4/4lnx-x4/16 then dy/dx=? Solution) dy/dx=-x^3/4(2/lnx-1)^2.    ^ means power

#title.simpal harmonic motion., #questionShow that the system oscillates in...

#questionShow that the system oscillates in simple harmonic motion demonstrated by; , for which the general solution where X = (x – x0)..

Shares and dividends, A man invests rs.10400 in 6%shares at rs.104 and rs.1...

A man invests rs.10400 in 6%shares at rs.104 and rs.11440 in 10.4% shares at rs.143.How much income would he get in all?

Show that the function f is one-one but not onto, Consider the function f: ...

Consider the function f: N → N, where N is the set of natural numbers, defined by f(n) = n 2 +n+1. Show that the function f is one-one but not onto. Ans: To prove that f is one

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