Last updated at May 29, 2018 by Teachoo

Transcript

Example 16 The variance of 20 observations is 5. If each observation is multiplied by 2, find the new variance of the resulting observations. Let the observations be 1 , 2 , 3 , ..., 20 and be their mean. Given that Variance = 5 and n = 20. We know that Variance = 1 n ( ) 2 5 = 1 20 ( ) 2 5 20 = ( ) 2 100 = ( ) 2 ( ) 2 = 100 If each observation is multiplied by 2 , we get new observations, Let the new observations be 1 , 2 , 3 , ..., 20 where = 2 ( ) We need to find variance of the new observations i.e. New Variance = 1 n ( ) 2 Now, We know = 2 ( ) Calculating in terms of = 1 = 1 20 2 = 2 ( 1 20 ) = 2 From (1) ( ) 2 = 100 ( 1 2 1 2 ) 2 = 100 ( 1 2 ( )) 2 = 100 1 2 2 ( ) 2 = 100 1 2 2 ( ) 2 = 100 ( ) 2 = 100 4 ( ) 2 = 400 Now, New Variance = 1 n ( ) 2 = 1 20 400 = 20

About the Author

Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 10 years. He provides courses for Maths and Science at Teachoo.