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Question:
The mean and standard deviation of six observations are 8 and 4, respectively. If each observation is multiplied by 3, find the new mean and new standard deviation of the resulting observations.
Answer:

Given number of obsevation = 6

Mean of observation = 8

Standard deviation of observations = 4

Let six observations are: a1 , a2 , a3 , a4 , a5 , a6

     Mean = (a1 + a2 + a3 + a4 + a5 + a6 )/6

=> 8 = (a1 + a2 + a3 + a4 + a5 + a6 )/6

=> 8*6 = a1 + a2 + a3 + a4 + a5 + a6 

=> a1 + a2 + a3 + a4 + a5 + a6  = 48.............1

Now each observation is multiplied by 3. So

3a1 + 3a2 + 3a3 + 3a4 + 3a5 + 3a6 = 48*3

3a1 + 3a2 + 3a3 + 3a4 + 3a5 + 3a6 = 144

Now new mean = (3a1 + 3a2 + 3a3 + 3a4 + 3a5 + 3a6 )/6

                      = 144/6

                      = 24

So new mean = 24 

Given standard deviation = 4

       Variance = (standard deviation)2

=> ∑{(ai )2 /n} - ∑{(ai ) /n}2   = (4)2

=> ∑{(ai )2 /6} - (8)2 = 16

=> ∑{(ai )2 /6}  - 64 = 16

=> ∑{(ai )2 /6} = 64+16

=>∑{(ai )2 /6} = 80

=> ∑(ai )2  = 80*6

=> ∑(ai )2  = 480

Now each observation is multiplied by 3. So

   (3a1 )2 + (3a2 )2 + (3a3 )2 + (3a4 )2 + (3a5 )2 + (3a6 )2

= 9*(a1 2 + a2 2 + a3 2 + a4 2 + a5 2 + a6 2 )

= 9* ∑(ai )2 

= 9*480

= 4320

Now new varience = {∑(ai )2 /n} - ∑{(ai )/n}2

                           = {4320/6} - (24)2

                           = 720-576

                           = 144

So new standard deviation = √144 = 12

 

 

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