If variance of $x_1, x_2 \ldots \ldots, x_{\mathrm{n}}$ is $\sigma_x^2$, then the variance of $\lambda x_1,…

If variance of $x_1, x_2 \ldots \ldots, x_{\mathrm{n}}$ is $\sigma_x^2$, then the variance of $\lambda x_1, \lambda x_2, \ldots \ldots, \lambda x_n(\lambda \neq 0)$ is
  1. $\lambda \cdot \sigma_x$
  2. $\lambda \cdot \sigma_x^2$
  3. $\lambda^2 \cdot \sigma_x$
  4. $\lambda^2 \cdot \sigma_x^2$

Solution

When each item of a data is multiplied by $\lambda$, variance is multiplied by $\lambda^2$. $\therefore \quad$ New variance $=\lambda^2 \cdot \sigma_x^2$

Asked in: MHT CET 2023 (11 May Shift 1)

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