BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What happens to variances when the variable is multiplied by a constant? Briefly, standard deviation increases by the same factor as the constant, but the variance gets multiplied by the square of the constant.

Detailed explanation-2: -Multiplication affects standard deviation by a scaling factor. If we multiply every data point by a constant K, then the standard deviation is multiplied by the same factor K.

Detailed explanation-3: -Let’s calculate the variance of the follow data set: 2, 7, 3, 12, 9. The variance is 13.84. To get the standard deviation, you calculate the square root of the variance, which is 3.72. Standard deviation is useful when comparing the spread of two separate data sets that have approximately the same mean.

Detailed explanation-4: -Variance is the average squared deviations from the mean, while standard deviation is the square root of this number. Both measures reflect variability in a distribution, but their units differ: Standard deviation is expressed in the same units as the original values (e.g., minutes or meters).