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

Constrcut the adjacency matrix, Constrcut the adjacency matrix and the adja...

Constrcut the adjacency matrix and the adjacency lists for the graph G belowr.

''t'' distribution, The 't' distribution is a theoretical probability distr...

The 't' distribution is a theoretical probability distribution. The 't' distribution is symmetrical, bell-shaped, and to some extent similar to the standard normal curve. It has an

..Job, Eddie mkes $15.75 per hour. Estimate how much Eddie will make per ye...

Eddie mkes $15.75 per hour. Estimate how much Eddie will make per year if he works 40 hours per week and 50 weeks per year.

Using two variables, Leo works at the Bagel Shop after school and on Saturd...

Leo works at the Bagel Shop after school and on Saturdays. He is paid $4.00 per hour after school and $5.00 per hour on Saturday. Last week Leo worked a total of 12 hours and made

Unit vector and zero vectors, Unit Vector and Zero Vectors Unit Vec...

Unit Vector and Zero Vectors Unit Vector Any vector along with magnitude of 1, that is || u → || = 1, is called a unit vector. Zero Vectors The vector w → = (

Integer exponents, We will begin this chapter by looking at integer exponen...

We will begin this chapter by looking at integer exponents.  Actually, initially we will suppose that the exponents are +ve as well. We will look at zero & negative exponents in a

Process for solving linear equations, 1. If the equation has any fractions ...

1. If the equation has any fractions employ the least common denominator to apparent the fractions. We will do this through multiplying both sides of the equation by the LCD. Al

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