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Question

Let x1, x2, ..., xn be n observations. Let yi=axi+b for i = 1, 2, 3, ..., n, where a and b are constants. If the mean of xi's is 48 and their standard deviation is 12, the mean of yi's is 55 and standard deviation of yi's is 15, the values of a and b are

(a) a = 1.25, b = −5 (b) a = −1.25, b = 5 (c) a = 2.5, b = −5 (d) a = 2.5, b = 5

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Solution

It is given that yi=axi+b for i = 1, 2, 3, ..., n, where a and b are constants.

xi = 48 and σxi=12

yi=55 and σyi=15

yi=axi+byin=axi+bnyin=axin+bnyi=axi+b 55=48a+b .....1

Now,

Standard deviation of yi = Standard deviation of axi+b

σyi=a×σxi15=12aa=1512=1.25

Putting a = 1.25 in (1), we get

b=55-48×1.25=55-60=-5

Thus, the values of a and b are 1.25 and −5, respectively.

Hence, the correct answer is option (a).

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