For a set of 500 observations variance is found to be 125. If 25 is added to each observation and 55 is subtracted then the new variance under simplification?
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Answer:
Variance remain same in each case
= 125
Step-by-step explanation:
Variance = (1/n) ∑ (xi _ mean)²
500 observations variance is found to be 125
=> 125 = (1/500) ∑ (xi _ mean)²
Mean = (1/n) ∑ xi
Case1 :
if 25 is added to each observation
then New Mean Would be (∑ xi + 25n )/n = old Mean + 25
each Value would be xi + 25
Mean will be old mean + 25
Hence
Variance Would remain Same
= 125
Similarly in case 2
When 55 is subtracted
mean will be reduced by 55
but Variance remain same = 125
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