If We Have a Data Set with a Mean of 12

question 42

Multiple Choice

If we have a data set with a mean of 12 and a variance of 3, what are the new mean and variance if we multiply the values by 2 and then add 5?

• A) Mean = 29, variance = 6
• B) Mean = 29, variance = 12
• C) Mean = 34, variance = 6
• D) Mean = 34, variance = 12

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Definitions:

Total Percentage Return

A measure of the overall return on an investment, including both capital gains and dividends or interest, expressed as a percentage of the initial investment value.

Interest Payment

The payment made by a borrower to a lender as a form of compensation for the use of borrowed money.

Investment

The allocation of resources, such as capital, with the expectation of generating an income or profit.

Annual Returns

The percentage gain or loss on an investment over a one-year period.