The variance of 20 observations is 5 . If each observation is multiplied by 2 , then what is the new variance of the resulting observations?

Step-by-step solution

Variance ( ^2 )= _ i=1 ^n f (x_i- X )^2 when each observation is multiplied by m , then, Variance ( ^2 )= _ i=1 ^n m^2 f (x_i- X )^2 Here, m=2 , so, new variance ( ^2 )=2^2 5=20