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

Compute the essential matrix and epipolar lines , 1. In Figure there are th...

1. In Figure there are three cameras where the distance between the cameras is B, and all three cameras have the same focal length f. The disparity dL = x0 - xL, while the disparit

Marketing research, Discuss the role research would play during your decisi...

Discuss the role research would play during your decision making

How much area will it irrigate in 30 minutes , Water in a canal 30 dm wide ...

Water in a canal 30 dm wide and 12 dm deep is flowing with a velocity of 10 km/h. How much area will it irrigate in 30 minutes if 8 cm of standing water is required for irrigation?

Mathematics Logic & Set Applications, I have a 40 question assignment for t...

I have a 40 question assignment for this topic, will you be able to complete it?

Binomial mathematical properties, Binomial Mathematical Properties 1. ...

Binomial Mathematical Properties 1. The expected or mean value = n × p = np Whereas; n = Sample Size p = Probability of success 2. The variance = npq Whereas; q =

Evaluate the integral, Example:   If c ≠ 0 , evaluate the subsequent integr...

Example:   If c ≠ 0 , evaluate the subsequent integral. Solution Remember that you require converting improper integrals to limits as given, Here, do the integ

Properties of the indefinite integral, Properties of the Indefinite Integra...

Properties of the Indefinite Integral 1.  ∫ k f ( x ) dx = k ∫ f ( x ) dx where k refer for any number.  Thus, we can factor multiplicative constants out of indefinite integral

Tangents, two circle of radius of 2cm &3cm &diameter of 8cm dram common tan...

two circle of radius of 2cm &3cm &diameter of 8cm dram common tangent

Infinite series, all properties, formulas of infinite series

all properties, formulas of infinite series

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