 Coefficient of Variation

The Coefficient of Variation explains the same thing which is explained by Standard Deviation. The advantage of using the coefficient of variation over Standard Deviation is that the Coefficient of variation is unit free. In more technical language, it is independent of scale whereas Standard Deviation is not independent of scale. It means one can …

Standard Deviation of AP Series

Standard Deviation for an Arithmetic Progression (AP) Series can be calculated using a simple formula given below: [{sigma ^2} = frac{{left( {n + 1} right)left( {n – 1} right)}}{{12}}{d^2}] [sigma = sqrt {frac{{left( {n + 1} right)left( {n – 1} right)}}{{12}}} cdot d] where (d) is the common difference in a AP series.

Different Formula for Variance & Standard Deviation

The formula for Variance: [{sigma ^2} = frac{{sumlimits_{i = 1}^n {{{left( {{X_i} – bar X} right)}^2}} }}{n}] It can also be written as follows: [{sigma ^2} = frac{{sum {left( {X_i^2 – 2bar X{X_i} + {{bar X}^2}} right)} }}{n}] [or,,,,{sigma ^2} = frac{{sum {X_i^2} – 2bar Xsum {{X_i}} + n{{bar X}^2}}}{n}] [or,,,,{sigma ^2} = frac{{sum {X_i^2} …

Chapter – 2: Elasticity of Demand – III (Proofs)

Q.3. (i) Prove that the elasticity of a downward sloping straight-line demand curve varies from infinity (left ( infty right )) at the price- axis to zero at the quantity-axis.  (ii) Comparing two straight line demand curves of the same slope, the one farther from the origin is less elastic at each price than the …

Chapter – 1: Concept of Demand – III (Movement & Shift)

Q3. Distinguish between change in quantity demanded and change in demand. or Differentiate between movement along a demand curve and shift in a demand curve. Ans. Change in quantity demanded means change in demand that takes place due to a change in price. Movement along a demand curve refers to a change in quantity demanded …

Utility and Utility Function

Utility, in Economics, is the capacity of a commodity to satisfy the wants of an economic agent. It may depend on the quantity or quality of a commodity, that is, an increase or decrease in quantity or improvement or deterioration in quality may increase or decrease utility derived from a commodity. We commonly assume that …

Chapter – 2: Elasticity of Demand – II (Numericals)

Q.2. Attempt the following: (a) Price of a commodity falls from ₹4 to ₹3 per unit. As result total expenditure on it rise from ₹200 to ₹300. Find out price elasticity of demand by percentage method. (b) As a result of a 5 per cent fall in the price of a good, its demand rises …

Chapter – 2: Elasticity of Demand – I

Q.1. (a) Give the meaning of, or differentiate between price elasticity, income elasticity and cross elasticity of demand. Draw appropriate diagrams. (b) Explain the relationship between price elasticity of demand, income elasticity of demand and elasticity of substitution. Ans. (a) Price Elasticity of Demand. Price elasticity of demand measures the degree of responsiveness of quantity …

Variance & Standard Deviation

Variance and Standard Deviation are the most frequently used measure of dispersion. Therefore, students of Econometrics should be well-acquainted with these concepts. Standard Deviation is the square root of Variance. So, we first need to know about Variance before we calculate the Standard Deviation. Variance is a measure of the average distance of observations from …