1
vote
2answers
46 views

Why does variance divide by $n-1$? [duplicate]

The variance is: $$\dfrac{\sum_{i=1}^{n}(x_i-\bar x)^2}{n-1}$$ I read that $n-1$ is used instead of just $n$ when we are measuring the variance of a sample taken from a bigger population. I don't ...
1
vote
6answers
75 views

Why is variance squared?

The mean absolute deviation is: $$\dfrac{\sum_{i=1}^{n}|x_i-\bar x|}{n}$$ The variance is: $$\dfrac{\sum_{i=1}^{n}(x_i-\bar x)^2}{n-1}$$ So the mean deviation and the variance are ...
1
vote
3answers
14 views

question about Mean absolute deviation formula

$$\frac{\sum_{i=1}^{n}(x_i-\bar x)}{n}$$ This method will not work for calculating the mean deviation. Instead we have: $$\frac{\sum_{i=1}^{n}|x_i-\bar x|}{n}.$$ I'm not quite understanding why ...
1
vote
1answer
134 views

Stuck…please help to understand how formula works in order to Find the standard deviation in normal distributions

A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 81%. What is the risk (standard deviation) that this investment manager has ...
0
votes
1answer
121 views

statistcs z-table standard deviation question…Please help.

A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 81%. What is the risk (standard deviation) that this investment manager has ...
0
votes
1answer
42 views

Please help ! A bit confused…I need to figure out exactlty what the question is asking me to determine.

Suppose that over a certain period prices of stocks in the S&P 500 can be approximately modeled using the normal distribution with $\mu = \$40.35$ and a standard deviation of $\$8.97$. The data ...
0
votes
1answer
66 views

Explanation for correlation coefficients and standard deviation rolling 3 dice

Roll in MATLAB 500 times threesome-dice (3 dice) and sum them.Find in addition: max and min in each sequence mean values of sum/min/max. deviations of sum/min/max. correlation ...
1
vote
3answers
170 views

Simple standard deviation question using stocks as example

The following table is from page 171 of Fundamentals of Investing (11th edition) by Gitman, Joehnk, Smart. Please consider only the X, Y and XY columns (second, third, fifth). Portfolio XY comprises ...