The mean and standard deviation of 6 observations are 8 and 4 respectively. If each observation is multiplied by 3, find the new standard deviation of the resulting observations.
Let the observations be x1,x2,x3,x4,x5 and x6, so their mean x¯=∑i=16xi6=8⇒∑i=16xi=48 On multiplying each observation by 3, we get the new observations as 3x1,3x2,3x3,3x4,3x5 and 3x6 . Now, their mean =x¯=∑i=163xi6=3×486=24 Variance of new observations =∑i=163xi−2426=32∑i=16xi−826=91× Variance of old observations =9×42=144 Thus, standard deviation of new observations = Variance =144=12