Question
Download Solution PDFThe variance of 20 observations = 5.If each observation is multiplied by 5, then the new variance will be
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFConcept:
Multiplying every value by a constant:- however, will multiply the mean, median, quartiles, range, interquartile range, and standard deviation by that constant, and multiply the variance by the square of that constant.
Var X =
Calculation:
Var X =
New observations = 5X1, 5X2, ...,5X20
New
=
= 5Xold
New Var X =
= 25 ×
= 25 × 5
= 125
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