Question
Economics Question on Coefficient of Variation
For a strictly convex function f(x), which one of the following is true? [0 < λ< 1]
A
λf(x1)+(1-λ)f(x2)>f[λx1+(1-λ)x2]
B
λf(x1)+(1-λ)f(x2)<f[λx1+(1-λ)x2]
C
λf(x1)+(1-λ)f(x2)≥f[λx1+(1-λ)x2]
D
λf(x1)+(1-λ)f(x2)≤f[λx1+(1-λ)x2]
Answer
λf(x1)+(1-λ)f(x2)>f[λx1+(1-λ)x2]
Explanation
Solution
The correct option is(A): λf(x1)+(1-λ)f(x2)>f[λx1+(1-λ)x2]