MixedHardQuestion 380013
Question
If variance of n observations xᵢ is σ², then variance of axᵢ + b is:
- Aa²σ²Correct
- Bσ²
- Caσ² + b
- D(aσ+b)²
Correct answer
a²σ²
Explanation
Shifting by b (adding constant) doesn't change variance. Scaling by a: Var(aX+b) = a²Var(X) = a²σ². Standard deviation becomes |a|σ.