Q76 / 125 · BITSAT 2017 · Mathematics

If the variance of the observations x1,x2,……,xn is σ2, then the variance of αx1,αx2,……,αxn,α≠0 is

  • A
    σ2
  • B
    ασ2
  • Correct answer
    C
    α2σ2
  • D
    σ2α2

Solution

Variance =1nΣ(x-x¯)2=σ2

New variance =1nΣ(αx-αx¯)2

=α21nΣ(x-x¯)2=α2σ2

Hence, the correct answer is option: 'C'.

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