Analyzing the Setup
Welcome, future engineer. Today, we are going to peel back the curtain on one of the most elegant properties of statistics: how scaling data affects its spread.
Imagine you have a set of data points, x1,x2,…,xn. They have a mean, xˉ, and a standard deviation, S.
Now, imagine you multiply every single one of these points by a constant, c. We want to determine how this transformation affects the standard deviation.
The Heartbeat of Data
Variance
Before we dive into the algebra, let's ground ourselves in the definition. The variance, S2, is the average squared deviation from the mean:
Think of this as the 'energy' of the distribution. It tells us how far, on average, our data points wander from the center.
If S2 is large, the data is scattered; if S2 is small, the data is tightly packed.
The Transformation
Now, we perform a transformation. We create a new set of observations, yi, where yi=c⋅xi.
Visually, if you imagine these points on a number line, you are stretching the entire line by a factor of c. If c>1, the points fly apart; if 0<c<1, they are squished together.
The new mean, yˉ, is simply the average of these new points:
Because c is a constant, we can pull it out of the summation:
The center of our distribution has shifted by exactly the same factor c.
The Algebraic Dance
Now, let's calculate the new variance, σy2. We plug our new variables into the definition:
Substituting yi=cxi and yˉ=cxˉ, we get:
σy2=n1i=1∑n(cxi−cxˉ)2
Here is where the magic happens. We can factor out the c from inside the parenthesis:
σy2=n1i=1∑n[c(xi−xˉ)]2
Remember your exponent rules, where (c⋅a)2=c2⋅a2. The expression becomes:
σy2=n1i=1∑nc2(xi−xˉ)2
Since c2 does not depend on the index i, we can pull it completely out of the summation:
σy2=c2(n1i=1∑n(xi−xˉ)2)
Look closely at the term inside the parenthesis. That is our original variance, S2. We have arrived at the conclusion:
Final Calculation
We are almost there. We have the new variance, but the question asks for the new standard deviation. We take the square root of both sides:
This simplifies to ∣c∣S.
Assuming c is positive, the new standard deviation is simply cS. The spread has scaled exactly by the factor c.