ACCT352 Lecture 7: Lecture 7
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Effects of linear transformations on summary statistics. If the instructor adds every student 6 points. New standard deviation=5: standard deviation is unaffected by additions or subtractions. The mean after new conditions will be equivalent to what is being added to every student. Effects of linear transformation on summary statistics. If the mean and the standard deviation of the grades in a course are 30 and 5 respectively. If the i(cid:374)st(cid:396)u(cid:272)to(cid:396) (cid:373)ultiplies eve(cid:396)y stude(cid:374)t"s g(cid:396)ade (cid:271)y (cid:1006: new mean= 30*2= 60, new standard deviation= 5*2=10, standard deviation is affected by additions or subtractions. Iqr and range behave similarly: standard deviation is always positive(ignore the sign!) Multiplying each observation in a data set by a number b multiplies the mean, median, by b and the measures of spread standard deviation, iqr) by abs(b) Adding the same number, a to each observation in a data set adds a to measures of (cid:272)e(cid:374)te(cid:396) .