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Question

The variance of 15 observations is 4. If each observation is increased by 9, find the variance of the resulting observations.

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Solution

Let x1,,x2,,x3 , ..., x15 be the given observations.

Variance X is given as 4.
If X¯ is the mean of the given observations, then we get:
Variance X=115i=115xi-X2 =4

Let u1,u2,u3 ... u15 be the new observations such that
ui=xi+9 for i=1,2 ,3, ...,15 ....(1) U¯ =1ni=115ui =115i=115xi+9 =115xii=115 +9×1515 as i=1159 =9×15 =X +9 ...(2)ui-U¯ =xi+9-9+X¯ from eq (1) and eq (2) =xi-X¯115×ui -U¯2 =115xi-X¯2 squaring both the sides and then dividing by 15115×i=115ui -U¯2 =115×i=115xi-X¯2 115×i=115ui -U¯2 = 4Variance U =4

Thus, variance of the new observation is 4.

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