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

Division, 1000000 divided by 19

1000000 divided by 19

Simulation and Modeling, I have some sample simulation and modeling practic...

I have some sample simulation and modeling practice questions using isee Stella software.

Fractions, what the answer to 1/4+1/3=3/12=?

what the answer to 1/4+1/3=3/12=?

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

Fraction, Ask question #Minimum 100 words accepted

Ask question #Minimum 100 words accepted

Multiplication properties, write a definition for associative property of m...

write a definition for associative property of multiplication in your own words and explain how you use it to compute 4*25*27 mentally

Differential equations, Find the normalized differential equation which has...

Find the normalized differential equation which has {x, xex} as its fundamental set

Linear relations, determine the equation that represent the following lines...

determine the equation that represent the following lines be sure to define your variable and show all of your work

The stoichiometric reaction, Prove that a reaction following the rate law v...

Prove that a reaction following the rate law v = k[A] 2 is characterized by a linear plot of [P] t 1 versus t-l, where P is the product of the stoichiometric reaction A = P. Sho

Evaluate the volume of one orange, An orange has a diameter of 3 inches. Ev...

An orange has a diameter of 3 inches. Evaluate the volume of one orange. (π = 3.14) a. 9.42 in 3 b. 113.04 in 3 c. 28.26 in 3 d. 14.13 in 3 d. To determine the

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