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CA Foundation · Quantitative Aptitude · Measures of Central Tendency and Dispersion

A variable x has mean 20 and standard deviation 4. A new variable is defined as y = 3x − 5. The mean and standard deviation of y are respectively:

The mean of y is 55 and its standard deviation is 12. The mean follows the full transformation, 3 × 20 − 5 = 55. Standard deviation ignores the shift of origin but is multiplied by the scale factor 3, giving 3 × 4 = 12.

  1. A55 and 7
  2. B60 and 12
  3. C55 and 12Correct
  4. D60 and 7

Explanation

Mean of y = 3(20) − 5 = 55. The SD is unaffected by change of origin (the −5) but is multiplied by the absolute value of the scale factor, so SD of y = 3 × 4 = 12. An SD of 7 wrongly applies the −5 shift to the SD as well.

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