The variance of 20 observations is 5. If each observation is multiplied by 2. Find the variance of the resulting observations.

Let the observations are x1, x2, x3, x4, …, x20

and Let mean =


Given: Variance = 5 and n = 20


We know that,



Putting the given values, we get





or …(i)


It is given that each observation is multiplied by 2, we get new observations


Let the new observation be y1, y2, y3, …, y20


where yi = 2(xi) …(ii)


or …(iii)


Now, we find the variance of new observations



Now, we calculate the value of


We know that,




[from eq. (ii)]




…(iv)


Putting the value of eq. (iii) and (iv) in eq. (i), we get








So,




= 20


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