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Q: What is Assumptions for Variance Homogeneous?

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Unequal in Variance

sole supliers no close subsstitutes homogeneous lack of knowldge of buyers

Investors care about mean and variance of returns only.They have homogeneous expectations.They have identical investment horizons.There is unlimited borrowing and lending at the risk-free rate.All assets are marketable.Unlimited short sales are allowed.Investors are price takers.There are no taxes and no transaction costs.Assets are perfectly divisible.

Favourable variance is that variance which is good for business while unfavourable variance is bad for business

efficiency variance, spending variance, production volume variance, variable and fixed components

Negative price variance is when the cost is less than budgeted. Volume variance is a variance in the volume produce.

The other assumptions are listed in the related link. The answer you are looking for is the same variance or standard deviation.

Variance

There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance

When data is homogeneous over k independent samples of size n_i for i=1,2,...,k, the pooled variance is given by s_p^2=((n_1-1) s_1^2+(n_2-1) s_2^2+⋯(n_k-1) s_k^2)/(n_1+n_2+⋯+n_k-k)

this is a technical term which is used for no firm and consumer can directly affect the market price. Assumptions are: large no's of buyers and sellers. price taker price minimum perfect information homogeneous product perfectly elastics free entry or exits no transportation cost.

Since Variance is the average of the squared distanced from the mean, Variance must be a non negative number.

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