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

Vectors, why minimum three coplanar vectors are required to give zero resul...

why minimum three coplanar vectors are required to give zero resultant and not two?

Demerits and merit-the mode, The mode Merits i.  This can be dete...

The mode Merits i.  This can be determined from incomplete data given the observations along with the highest frequency are already known ii.  The mode has some applic

Solve the inequality |x - 1| + |x - 2|, Solve the inequality |x - 1| + |x -...

Solve the inequality |x - 1| + |x - 2|≤ 3. Working Rule:    First of all measure the expression to zero whose modulus happens in the given inequation and from this search the va

What are the properties of normal distribution, What are the properties of ...

What are the properties of Normal distribution? The normal curve is symmetrical when p=q or p≈q The normal curve is a single peaked curve The normal curve is asymptotic t

Compare and contrast african immigrants, Compare and contrast African immig...

Compare and contrast African immigrants with our immigrant groups? How are they different? What are the implications of these differences for their adjustment to the larger society

Regression, Regression line drawn as Y=C+1075x, when x was 2, and y was 239...

Regression line drawn as Y=C+1075x, when x was 2, and y was 239, given that y intercept was 11. calculate the residual

Matrix, find the matrix of the linear transformations T:R2->R2 defined by T...

find the matrix of the linear transformations T:R2->R2 defined by T(x,y,z)=(x+2y,x-3z).

Geometry, how do you find the length of a parallel line connecting two exte...

how do you find the length of a parallel line connecting two external circles of different sizes from the outside, given the value of both radius and one parallel line.

What is number systems, NUMBER SYSTEMS: Numbers  are intellectual  witne...

NUMBER SYSTEMS: Numbers  are intellectual  witnesses  that belong  only  to  mankind. Example: If the H C F of 657 and 963 is expressible in the form of 657x + 963 x -

Integrals involving roots - integration techniques, Integrals Involving Roo...

Integrals Involving Roots - Integration Techniques In this part we're going to look at an integration method that can be helpful for some integrals with roots in them. We hav

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