Let be observations, and let be their arithmetic mean and be their variance.Statement 1: Variance of is .Statement 2: Arithmetic mean of is .
- AStatement 1 is false, statement 2 is true
- BStatement 1 is true, statement 2 is true; statement 2 is a correct explanation for statement 1
- CStatement 1 is true, statement 2 is true; statement 2 is not a correct explanation for statement 1
- DStatement 1 is true, statement 2 is false
Solution & Step-by-step Explanation
Statement 1: If each observation is multiplied by a constant , the variance is multiplied by .New variance . (True)Statement 2: If each observation is multiplied by a constant , the mean is multiplied by .New mean .The statement claims it is , so it is False.