the mean of 10 observations is 10.all the observations are increased by 10percent the mean of increase observations will be
Answers
Answer:
Conclusion first: mean will increase by 10% and variance will increase by 10%^2.
Personally I can never memorize those complex formulas and theorem. For any mathematical and statistical question, I just need to know the logic and then write it out which is already a very good proof for many equations.
Back to this question: suppose you have 2 observations A and B.
Mean_Initial = (A+B)/2
Mean_New = (1.1*A+1.1*B)/2 = 1.1*(A+B)/2 = 1.1*Mean_Initial
Variance_Initial = (A-Mean_Initial)^2 + (B-Mean_Initial)^2
Variance_New = (1.1*A-1.1*Mean_Initial)^2+(1.1*B-1.1*Mean_Initial)^2 = 1.1^2*Variance_Initial
Starting from this simple example, you can make it more abstract which is something called general method.
You can expend your sample size into a large one until infinity. They all follow the same procedures and you will get the same conclusion.
Given : The mean of 10 observations is 10.
All the observations are increased by 10%.
To Find : What is the mean of increased observations?
Solution:
Note :
Mean of observations is increased by k if each observation is increased by k
Mean of observations is decreased by k if each observation is decreased by k
Mean of observations is multiplied by k if each observation is multiplied by k
Mean of observations is divided by k if each observation is divided by k
All the observations are increased by 10%
Let say Earlier observation was a
Then observation after 10 % increase is a + (10/100)a
= 1.1a
Hence Each observation is multiplied by 1.1
Mean of observations is multiplied by k if each observation is multiplied by k
Here k = 1.1
old mean = 10
Hence Mean of increased observations = 1.1 * 10
=> Mean of increased observations = 11
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