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Q.

The mean and standard deviation of a sample of size 20 are found 10 and 2 respectively. If one item 8 is replaced by 12 then

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a

standard deviation increases

b

standard deviation decreases

c

standard deviation will remain same

d

mean increases by 4%

answer is B.

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Detailed Solution

Σxi=20×10=200 so new sum =2008+12=204.

New mean = 10.2 so increase of 2%.

Also 120Σxi2102=4. so Σxi2=2080

New sum of squares =208064+144

                                    = 2160

 New variance =120×2160204202=108104.04=3.96<4

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