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Question:
The mean and standard deviation of 20 observations are found to be 10 and 2, respectively. On rechecking, it was found that an observation 8 was incorrect. Calculate the correct mean and standard deviation in each of the following cases: (i) If wrong item is omitted. (ii) If it is replaced by 12.
Answer:

Given mean and SD of 20 observations are 10 and 2 respectively.

Case 1. If wrong items are omitted

   Given mean  = 10

     ∑ xi/20 = 10   (1<= i < =20)

=> ∑ xi = 10*20

=> ∑ xi = 200

 Observations 8 is recorded incoorectly.

So ∑ xi = 200 - 8

=> ∑ xi = 192

Now new mean is

∑ xi/19 = 192/19 = 10.11

So new mean is 10.11

Again given SD = 2

So varience = (SD)2 = 4

=> ∑ xi2 /20 - (∑ xi/20)2 = 4

=> ∑ xi2 /20 - (10)2 = 4

=> ∑ xi2 /20 - 100 = 4

=> ∑ xi2 /20 = 100 + 4

=> ∑ xi2 /20 = 104

=> ∑ xi2 = 104*20 = 2080

Observation 8 is recorded incoorectly.

Now 

      ∑ xi2  = 2080 - 82

=>  ∑ xi2  = 2080 - 64

=> ∑ xi2  = 2016

Now variance of remaining observations are

     ∑ xi2 /19 - (∑ xi/19)2

=> 2016/19 - 10.112

=> 106.11 - 102.21

=> 3.9

So new SD = √3.9 = 1.975  

Case 2. If wrong item 8 is replaced by 12

   Given mean  = 10

     ∑ xi/20 = 10   (1<= i < =20)

=> ∑ xi = 10*20

=> ∑ xi = 200

 Observations 8 is recorded incoorectly.

So ∑ xi = 200 - 8 + 12

=> ∑ xi = 192 + 12 = 204

Now new mean is

∑ xi/19 = 204/20 = 10.2

So new mean is 10.2

Again given SD = 2

So varience = (SD)2 = 4

=> ∑ xi2 /20 - (∑ xi/20)2 = 4

=> ∑ xi2 /20 - (10)2 = 4

=> ∑ xi2 /20 - 100 = 4

=> ∑ xi2 /20 = 100 + 4

=> ∑ xi2 /20 = 104

=> ∑ xi2 = 104*20 = 2080

Observation 8 is recorded incoorectly.

Now 

      ∑ xi2  = 2080 - 82 + 122

=>  ∑ xi2  = 2080 - 64 + 144

=> ∑ xi2  = 2160

Now variance of remaining observations are

     ∑ xi2 /20 - (∑ xi/20)2

=> 2160/20 - 10.22

=> 108 - 104.04

=> 3.96

So new SD = √3.96 = 1.99  

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