The arithmetic mean of 200 observations is 60. If 5 is multiplied to each observation, then what will be the new arithmetic mean?
- A. 500
- B. 300 ✓
- C. 60
- D. 40
Correct Answer: B. 300
Explanation
If each observation in a dataset is multiplied by a constant k, the new arithmetic mean is also multiplied by k. Thus, the new mean is 60 * 5 = 300.
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