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What is a corresponding coefficient?
When you have two polynomials that equal each other, their corresponding coefficients equal each other.
What is coefficient example?
A coefficient refers to a number or quantity placed with a variable. For example, in the expression 3x, 3 is the coefficient but in the expression x2 + 3, 1 is the coefficient of x2. In other words, a coefficient is a multiplicative factor in the terms of a polynomial, a series, or any expression.
What do you mean by coefficient of variation?
Coefficient of Variation. What is the Coefficient of Variation? The coefficient of variation (relative standard deviation) is a statistical measure of the dispersion of data points around the mean. The metric is commonly used to compare the data dispersion between distinct series of data.
What is the Gini coefficient and what does it mean?
The Gini coefficient was developed by Italian statistician Corrado Gini in 1912, and today is the most commonly used measurement of wealth or income inequality. The Gini coefficient ranges from 0 (0%) to 1 (100%), with 0 representing perfect equality and 1 representing perfect inequality. A higher Gini coefficient means greater inequality.
How is the coefficient of variation of a security determined?
By determining the coefficient of variation of different securities, an investor identifies the risk-to-reward ratio of each security and develops an investment decision. Generally, an investor seeks a security with a lower coefficient (of variation) because it provides the most optimal risk-to-reward ratio with low volatility but high returns.
Mathematically, the Gini coefficient is defined based on the Lorenz curve. The Lorenz curve plots the percentiles of the population on the graph’s horizontal axis according to income or wealth, whichever is being measured. The cumulative income or wealth of the population is plotted on the vertical axis. While the Gini coefficient is