The variance of 20 observations is 5. If each observation is multiplied by 2, then the variance of the resulting observations will be:

Correct option is A

Given:

Variance of the original observations is 5.

Concept Used:

​$$\text{Variance of new observations} = a^2 \times \text{Variance of original observations}$$​​

Solution:

Given variance of the original observations is 5.

 Since each observation is multiplied by 2, the new variance is:

​$$2^2 \times 5$$​​

The new variance is $$2^2 \times 5$$​.