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Question: Answered & Verified by Expert
If the variance of the observations x1,x2,,xn is σ2, then the variance of αx1,αx2,,αxn,α0 is
MathematicsStatisticsBITSATBITSAT 2017
Options:
  • A σ2
  • B ασ2
  • C α2σ2
  • D σ2α2
Solution:
2111 Upvotes Verified Answer
The correct answer is: α2σ2

Variance =1nΣ(x-x¯)2=σ2

New variance =1nΣ(αx-αx¯)2

=α21nΣ(x-x¯)2=α2σ2

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