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CMA Foundation · Fundamentals of Business Mathematics and Statistics · Measures of Central Tendency and Dispersion

Each of the 10 observations in a data set is increased by 5 and then multiplied by 2. If the original mean was 14, what is the new mean?

The new mean is 38. The arithmetic mean is affected by change of origin and scale, so it undergoes the same operations as each observation: add 5 to 14 to get 19, then multiply by 2 to get 38.

  1. A33
  2. B28
  3. C38Correct
  4. D43

Explanation

The mean follows the same changes as the observations: (14 + 5) × 2 = 19 × 2 = 38. Option 33 adds 5 after doubling only the original mean (28+5), reversing the order of operations, and is wrong.

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