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Question

If the SD of a set of observation is 8 and each observation is divided by 2, then the SD of the new set of observations will be.

A
4
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B
8
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C
8
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D
4
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Solution

The correct option is C 4
We know that, if X and Y are two variables such that Y=Xa,a0
Then, σY=1|a|σX, where σY is the SD of new observations, σX is the SD for old observations and a is the factor from which each observation is being divided by
SD of the new observations =8|2|=4.

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