Consider a finite sequence of random values \(X=[x_1,x_2,\dots x_n]\). Let…

2011

Consider a finite sequence of random values \(X=[x_1,x_2,\dots x_n]\). Let \(\mu_x\) be the mean and \(\sigma_x\) be the standard deviation of \(X\). Let another finite sequence \(Y\) of equal length be derived from this as \(y_i=a*x_i+b\), where \(a\) and \(b\) are positive constants. Let \(\mu_y\) be the mean and \(\sigma_y\) be the standard deviation of this sequence.

Which one of the following statements is INCORRECT?

  1. A.

    Index position of mode of \(X\) in \(X\) is the same as the index position of mode of \(Y\) in \(Y\)

  2. B.

    Index position of median of \(X\) in \(X\) is the same as the index position of median of \(Y\) in \(Y\)

  3. C.

    \(\mu_y=a \mu_x + b\)

  4. D.

    \(\sigma_y=a \sigma_x + b\)

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Correct answer: D

We have y_i = a x_i + b with a, b > 0. Key properties:

  • Mean: mu_y = a mu_x + b. Derivation: mu_y = (1/n) sum y_i = (1/n) sum (a x_i + b) = a mu_x + b.

  • Standard deviation: sigma_y = |a| sigma_x. Derivation: sigma_y = sqrt((1/n) sum (y_i - mu_y)^2) = sqrt((1/n) sum (a (x_i - mu_x))^2) = |a| sigma_x. With a > 0 this simplifies to sigma_y = a sigma_x.

  • Mode and median indices: A positive linear transformation is monotonic and one-to-one, so it preserves order and multiplicities. Therefore the positions in the sequence of the mode(s) and the median element remain the same after transforming each element by y_i = a x_i + b.

Conclusion: The statement asserting that the standard deviation transforms as sigma_y = a sigma_x + b is incorrect. The correct relation is sigma_y = a sigma_x (since a > 0), and the +b term should not appear.

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