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Q.

If the standard deviation of a variable X is σ, then the standard deviation of variable a X+bc, is 

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a

a σ

b

acσ

c

acσ

d

aσ+bc

answer is C.

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Detailed Solution

Let Y=aX+bc

Let x1, x2,...., xn be the values taken by variable X. Then, the corresponding values of variable Y are given by

   yi=axi+bc,i=1,2,,n 1ni=1nyi=ac1ni=1nxi+bc

         Y¯=acX¯+bc    yiY¯=acxiX¯;i=1,2,,n    1ni=1nyiY¯2=a2c21ni=1nxiX¯2    σY2=a2c2σ2σY=acσ

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