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Questions  

Variance is independent of change of

a
origin only
b
scale only
c
origin and scale both
d
none of these

detailed solution

Correct option is A

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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