If the random variable X has mean 3 and standard deviation 5, then what is the variance of the random variable Y = 2X - 5 ?
- A. 15
- B. 40
- C. 45
- D. 100 ✓
Correct Answer: D. 100
Explanation
If Y = aX + b, then Var(Y) = a^2 Var(X). Given the standard deviation of X is 5, Var(X) = 25. Thus, Var(Y) = 2^2 * 25 = 100.
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