Question 11 Mark
If $x_1, x_2, \ldots, x_n$ are $n$ values of a variable $X$ and $y_1, y_2, \ldots, y_n$ are $n$ values of variable $Y$ such that $y_i=a x_i+b, i=1,2, \ldots, n$, then write $\operatorname{Var}( Y )$ in terms of $\operatorname{Var}( X )$.
Answer
View full question & answer→$\overline{\text{Y}}=\frac{1}{\text{n}}\Big\{\sum\text{y}_\text{i}\Big\}=\frac{1}{\text{n}}\Big\{\sum\text{ax}_\text{i}+\text{b}\Big\}=\text{a}\overline{\text{x}}+\text{b}$ $\therefore\text{y}_\text{i}-\overline{\text{y}}=\text{ax}_\text{i}+\text{b}-\text{a}\overline{\text{x}}-\text{b}=\text{a}(\text{x}_\text{i}-\overline{\text{x}})$ $\text{Var}(\text{Y})=\frac{1}{\text{n}}\Big\{\sum(\text{y}_\text{i}-\overline{\text{y}})^2\Big\}=\frac{1}{\text{n}}\Big\{\sum\text{a}^2(\text{x}_\text{i}-\overline{\text{x}})^2\Big\}\\=\text{a}^2\Big[\frac{1}{\text{n}}\big\{(\text{x}_\text{i}-\overline{\text{x}})^2\big\}\Big]=\text{a}^2\big[\text{Var}(\text{X})\big]$