Analyzing the Setup
In this statistical problem, we are given n=15 observations. The initial sum of these observations is ∑x=170, and the initial sum of their squares is ∑x2=2830.
A data point was incorrectly recorded as 20 instead of 30. To find the correct variance, we must first adjust these two fundamental pillars of the dataset.
The Logic of Correction
We begin by correcting the sum of the observations. We subtract the erroneous value and add the correct value to the original sum:
Next, we correct the sum of the squares. We must subtract the square of the incorrect value and add the square of the correct value:
Performing the arithmetic, we obtain:
∑xnew2=2830−400+900=3330
The Final Calculation
With the corrected sums, we first calculate the corrected mean, denoted as xˉ:
Now, we apply the standard formula for variance, σ2=n∑x2−(xˉ)2. Substituting our updated values into the equation:
Calculating the division and the square, we find:
The corrected variance of the dataset is 78.