volatility

Examples of volatility in the following topics:

• Introduction to continuous distributions (special topic)

  • Usually we do not use so many bins with smaller sample sizes since small counts per bin mean the bin heights are very volatile.

• Variability in linear combinations of random variables

  • However, there was no quantitative discussion of the volatility of this portfolio.
  • While an average monthly return of $134 on an $8000 investment is nothing to scoff at, the monthly returns are so volatile that Leonard should not expect this income to be very stable.

• Introduction to comparing many means with ANOVA

  • Any real difference in the means of groups I, II, and III is difficult to discern, because the data within each group are very volatile relative to any differences in the average outcome.

• Variability in random variable

  • Suppose you ran the university bookstore.Besides how much revenue you expect to generate, you might also want to know the volatility (variability) in your revenue.

• Misleading Graphs

  • An axis change affects how the graph appears in terms of its growth and volatility.

• Chance Models

  • Stochastic modeling builds volatility and variability (randomness) into a simulation and, therefore, provides a better representation of real life from more angles.

• Linear combinations of random variables

  • While stocks tend to rise over time, they are often volatile in the short term.