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?
A.0.25
B.0.5✓ Correct
C.0.75
D.1.00
Explanation
Adding a constant does not change the standard deviation. Dividing each observation by 20 divides the standard deviation by 20. Therefore the new standard deviation = 10/20 = 0.5.
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