The mean and standard deviation of 10 observations are 20 and 8 respectively. Later on, it was observed that one observation was recorded as 50 instead of 40. Then the correct variance is :
Solutions · 1
Official solution
1. Calculate the sum of the original observations:
10x1+x2+…+x9+50=20x1+x2+…+x9=150
2. Calculate the sum of the squares of the original observations using the original variance:
σ2=82=6464=10x21+x22+…+x29+2500−400x21+x22+…+x29=2140
3. Calculate the new mean after correcting the error:
=10150+40=19
4. Calculate the new variance using the corrected sum of observations and the corrected sum of squares of observations:
σ2=102140+1600−(19)2⇒σ2=13
The correct variance after correcting the error is 13 (Option C).