Single correct option
The mean of a data set is and its standard deviation is . Each observation is multiplied by and then increased by . The variance of the new data is
- A.
- B.
- C.
- D.
Show answer and solution
Answer: (A)
Under , the mean becomes and the standard deviation is multiplied by only, giving ; the shift does not change spread. The variance is therefore . The value is the original variance, multiplies the variance by instead of , and comes from adding the shift to the standard deviation. Variance scales by the square of the multiplier.
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