measure is the standard deviation. Standard Deviation: It is a measure of the values of the variables around its mean or it is the square root of the sum of the squared deviations from the mean divided by the number of observances. The arithmetic mean of the returns may be same for two companies but the returns may vary widely. This can be illustrated with an example. Now let us take two companies A and B to calculate the expected returns. COMPANY A standard deviation is affected by the
Premium Variance Risk Arithmetic mean
10 = 10% 3. Now calculate the standard deviations and coefficients of variation of returns for the five alternatives. (Hint: Coefficient of variation of return is defined as the standard deviation divided by the expected rate of return. It is a standardized measure of risk that assesses risk per unit of return). 1-Year T-Bill Variance = (0.10 x [.07-.07]2)+ (0.20 x [.07-.07]2) + (0.40 x [.07-.07]2) + (0.20 x [.07-.07]2) + (0.10 x [.07-.07]2) = 0 Standard Deviation = 0 = 0% Coefficient of variation
Premium Standard deviation Investment Probability theory
1.2 Below we list several variables. Which of these variables are quantitative and which are qualitative? Explain. a. The dollar amount on an accounts receivable invoice. Answer – Quantitative as the value is a number b. The net profit for a company in 2009. Answer – Quantitative as the value is a number. c. The stock exchange on which a company’s stock is traded Answer – Qualitative as it is descriptive or categorical. d. The national debt of the united states in 2009. Answer
Premium Standard deviation Arithmetic mean Variance
were used. These are the density‚ relative error and the standard deviation. Density is refers to the mass (m) per unit volume (V) of a material and is often represented by the symbols d or ρ‚ where d = m/V. The density of an object changes with pressure and temperature. Second‚ relative error is a calculated by finding the difference between the true and measured values and dividing this difference by the true answer. And‚ the standard deviation is the measure of the spread of dispersion of scores (density)
Premium Volume Density Temperature
service clients. However‚ TDS is organized into 100 different geographically regions. The average sales for a region is $1‚000‚000‚ with a standard deviation of $100‚000. The manager of each geographical region has the autonomy to establish a compensation plan. The average annual compensation for an insurance agent is $60‚000‚ with a standard deviation of $12‚000. Assume that TDS has hired you as a consultant. Your services are desired to help TDS make two critical decisions. The first decision
Premium Standard deviation Arithmetic mean
Exam 1 Chapter 1 * In statistics the group we wish to study is called the population * A sample is a subset of the population which is used to gain insight about the population. Samples are used to represent a larger group‚ the population. * • Descriptive statistics – the collection‚ organization‚ analysis‚ and presentation of data. * Inferential statistics – uses descriptive statistics to estimate population parameters; an educated guess about the population based on sample
Premium Standard deviation Median
following measures of variation for the data set. Show your work. A table has been provided to help you calculate the standard deviations. In the table round values in the last two columns to four decimal places. Report the standard deviation statistics to four decimal places. Range: _____0.6________ Standard Deviation of this data: ___.1648__________ Estimated Standard Deviation for all pieces produced: ______.1721_______ X x-µ (x-µ)2 3.8 -.2667 .0711 3.9 -.1667 .0277 3.9 -.1667 .0277 4.0 -.0667
Premium Statistics Standard deviation Arithmetic mean
University of Southern California Department of Economics ECON 317 Introduction to Statistics for Economists Prof. Safarzadeh Assignment # 2 Student Name: ________________ Answer all the questions on the spaces provided. Underline your answers and show your calculations and work on the tables. Item |Speed |Mileage | | |X - X |(X- X)2 |(Y-Y) |(Y-Y)2 |(X-X)(Y-Y) | | | |1 | 30 | 25 | | | | | | | | | | |2 | 50 | 20 | | | | | | | | | | |3 | 35 | 23 | | | | | | | | | | |4 | 45 | 21 | |
Premium Median Arithmetic mean Standard deviation
References: Bhattacharya‚ C. B. (1997). "Is your brand ’s loyalty too much‚ to little‚ or just right?" : Explaining deviations in loyalty from the Dirichlet norm. International Journal of Research in Marketing‚ 14‚ 421-435. Hesse‚ F.‚ Loesch‚ K.‚ Spies‚ Kordelia. (1997). "Store atmosphere‚ mood and purchasing behavior." International Journal of Research in Marketing‚ 14
Premium Standard deviation Coca-Cola Soft drink
and variability (standard deviation) of Reynolds‚ Hasbro‚ and Vanguard Index 500 Trust during the past 5 years. Which one appears to be riskiest? S&P 500 REYNOLDS HASBRO Mean 0.57% 1.87% 1.18% Variance 0.13% 0.88% 0.66% Standard Deviation 3.60% 9.37% 8.12% - Conclusion: Reynolds appears to be riskiest. - Explanation: Given the fact that risk reflects the uncertainty of future return on a given asset or a portfolio of assets‚ standard deviation is thus used as
Premium Investment Standard deviation