InterviewSolution
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InterviewSolution
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From the prices of shares X and Y below, find out which is more stable in value |
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Answer» Here, Mean(X), `barX = (sumX_i)/N = 510/10 = 51` Mean(Y),`barY = (sumY_i)/N = 1050/10 = 105` Now, we can draw table for `barX-X and barY-Y`. Please refer to video for the table.Now,Variance(X), `(sigma_X)^2 = (sum(barX-X)^2)/N = 350/10=35` `sigma_X = sqrt35 ~~ 5.9` Coefficient of variation,`C.V._X = sigma_x/barX**100 = 5.9/51*100 = 14% ` Variance(Y), `(sigma_Y)^2 = (sum(barY-Y)^2)/N = 40/10=4` `sigma_x = sqrt4 = 2` Coefficient of variation,`C.V._Y = sigma_Y/barY**100 = 2/105*100 = 1.85% ` As, coefficient of variation is less for Y, `Y` is more stable than `X`. |
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