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

Variation of parameters, In this case we will require deriving a new formul...

In this case we will require deriving a new formula for variation of parameters for systems.  The derivation now will be much simpler than the when we first noticed variation of pa

Evaluate the slope of the tangent line, Evaluate the given limits, showing ...

Evaluate the given limits, showing all working: Using first principles (i.e. the method used in Example 1, Washington 2009, Using definition to find derivative ) find the

Actual solution to a differential equation, The actual solution is the spec...

The actual solution is the specific solution to a differential equation which not only satisfies the differential equation, although also satisfies the specified initial conditions

Ratio test - sequences and series, Ratio Test In this part we are goin...

Ratio Test In this part we are going to take a look at a test that we can make use to see if a series is absolutely convergent or not.  Remind that if a series is absolutely c

Prove that ac2 = ap2 + 2(1+2)bp2, ABC is a right-angled isosceles triangle,...

ABC is a right-angled isosceles triangle, right-angled at B. AP, the bisector of ∠BAC, intersects BC at P. Prove that AC 2 = AP 2 + 2(1+√2)BP 2 Ans:    AC = √2AB (Sinc

#title., I need to follow the pattern .125,.25,.375,.5, ?

I need to follow the pattern .125,.25,.375,.5, ?

What is limit x tends to 0 log(1+x)/x to the base a?, Here we will use the...

Here we will use the expansion method Firstly lim x-0 log a (1+x)/x firstly using log property we get: lim x-0 log a (1+x)-logx then we change the base of log i.e lim x-0 {l

Assignment Help, I would like to work on Assignment help in Mathematics

I would like to work on Assignment help in Mathematics

Method for simultaneous equations of two or more variables, Method In ...

Method In this method we eliminate either x or y, get the value of other variable and then substitute that value in either of the original equations to

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