ISOM111 - Assignment 1. Problem1. a) Says:...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Assignment 1. Problem1. a) Says : “A volatile stock would have a high standard deviation. In mutual funds, the standard deviation tells us how much the return on the fund is deviating from the expected normal returns”. Is this statement appropriate ? b) In practice, we say when there are outliers, we can’t use variance as the only tool to measure the variation of the data. Why? If so, what else do we need ? Explain your choice. Problem 2. You are given a sample with size=20. Unfortunately, you can’t observe each values of the data. But you do know the sample , 10 = x and sum of squares , 4000 20 1 2 = = i i x a) Calculate the variance b) Calculate the coefficient of variation. c) For any samples with sample size =n , prove 2 2 2 1 2 2 2 1 ... x n x x x x n n + + + + Problem 3. A cab was involved in a hit and run accident at night. There are two cab companies that operate in the city, a Blue Cab company and a Green Cab company. It is known that 85 cabs in the city are green and 15 are blue. A
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online