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Q.

The mean deviation of an ungrouped data is 50. If each observation is increased by 2%, then the new mean deviation is 

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a

50

b

51

c

49

d

50.5

answer is B.

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Detailed Solution

If x1xn are the observations then the new
observations are (1.02)x1,(1.02)x2..,(1.02)xn

Therefore the new mean =(1.02)x¯

New mean deviation =1n(1.02)xi(1.02)x¯

                                  =(1.02)1nxix¯=(1.02)×50=51

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