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Q.

The variance of 20 observations is 5. If each one of the observations is multiplied by 2, then the variance of the resulting observations is 

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a

10

b

40

c

20

d

80

answer is C.

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Detailed Solution

 If each one of the observations is multiplied by 2 then mean is doubled

Now, varience =σ2=(Xμ)2n

Now ,both X and μ is doubled then varience will become four times

Then,the new variance will be four times the old variance which is 

=4×5

=20

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The variance of 20 observations is 5. If each one of the observations is multiplied by 2, then the variance of the resulting observations is