$\therefore \;\bar x = \frac{1}{n}\Sigma {x_i} \Rightarrow n \times \bar x = \Sigma {x_i }\\ \Rightarrow\Sigma {x_i}=20\times10=200$
Therefore Incorrect $\Sigma {x_i} = 200$
Now $\frac{1}{n}\Sigma x_i^2 - {(\bar x)^2} =\sigma^2$
$\Rightarrow \frac{1}{{20}}\Sigma x_i^2 - {(10)^2} = 4 \Rightarrow \Sigma x_i^2 = 2080$
If it is replaced by 12,
When wrong item 8 is replaced by 12
Therefore, Correct $\Sigma {x_i}$ = Incorrect $\Sigma {x_i}$ - 8 + 12
= 200 - 8 + 12 = 204
$\therefore$ Correct mean = $\frac{{204}}{{20}}$ = 10.2
Also correct $\Sigma x_i^2$ = Incorrect $\Sigma x_i^2$ - (8)2 + (12)2
= 2080 - 64 + 144 = 2160
$\therefore$ Correct variance $= \frac{1}{{20}}(correct\;\Sigma x_1^2)$ - (correct mean)2
$ = \frac{{2160}}{{20}} - {\left( {\frac{{204}}{{20}}} \right)^2}$
$= \frac{{2160}}{{20}} - \frac{{41616}}{{400}} = \frac{{43200 - 41616}}{{400}} = \frac{{1584}}{{400}}$
Correct S.D. $= \sqrt {\frac{{1584}}{{400}}} = \sqrt {3.96}$ = 1.989