Q240 / 270 · NDA 2013 (Phase 2) · Mathematics
The variance of 20 observations is 5 . If each observation is multiplied by 2 , then what is the new variance of the resulting observations?
- A5
- B10
- Correct answerC20
- D40
Solution
Variance $\left(\sigma^2\right)=\sum_{i=1}^n f\left(x_i-\overline{\mathrm{X}}\right)^2$
when each observation is multiplied by $m$, then, Variance $\left(\sigma^2\right)=\sum_{i=1}^n m^2 f\left(x_i-\overline{\mathrm{X}}\right)^2$
Here, $m=2$, so, new variance $\left(\sigma^2\right)$
$=2^2 \times 5=20$
Hence, the correct answer is option: 'C'.