Q.
Variance is independent of change of
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a
origin only
b
scale only
c
origin and scale both
d
none of these
answer is A.
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Detailed Solution
If x1,x2,…,xn are n values of a variable X and U is a variable taking values u1,u2,…,un such that ui=xi−ahi.e.xi=a+hui,i=1,2,…,n. Then,Var(X)=h2Var(U)⇒Variance is independent of change of origin but not scale.
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