The standard deviation of 100 observations is 10. If 5 is added to each observation and then divided by 20, then what will be the new standard deviation?

  1. A. 0.25
  2. B. 0.5
  3. C. 0.75
  4. D. 1.00

Correct Answer: B. 0.5

Explanation

Adding a constant to all observations does not change the standard deviation. However, dividing all observations by a constant scales the standard deviation by the absolute value of that constant. New SD = \frac{10}{20} = 0.5.

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