Analyzing the Setup
Imagine you are standing in a field with ten markers placed at various positions. You are told the sum of their positions relative to a central point 5 is 10, and the sum of the squares of these relative positions is 40.
We begin by defining a new variable to simplify our calculations. Let ui=xi−5. This represents our shift of origin.
The problem provides the following sums for
n=10:
i=1∑10ui=10
i=1∑10ui2=40
Decoding the Statistical Parameters
The mean of
u is calculated as:
uˉ=n∑ui=1010=1
For the variance of
u, we use the fundamental formula
Var(u)=n∑ui2−(uˉ)2. Substituting our known values:
Var(u)=1040−(1)2=4−1=3
This value represents the spread of our data relative to the point 5.
The Mean's Sensitivity
Now, let us find the mean of our original data, xi. Since ui=xi−5, it follows that xi=ui+5.
By the linearity of the mean:
xˉ=uˉ+5
xˉ=1+5=6
The mean is sensitive; it follows the shift of the origin perfectly. If you shift the data, the mean shifts with it.
The Variance's Stoicism
We want the mean and variance of yi=xi−3. Let us look at the variance first.
The variance is a measure of dispersion—how far the points are from each other. If you subtract 3 from every single data point, you are simply sliding the entire distribution along the number line. The relative distances between the points do not change.
Thus, the variance remains unchanged:
Var(x−3)=Var(x)=3
The variance is the stoic observer; it remains unmoved by the change of origin.
The Final Synthesis
Finally, we calculate the new mean
μ for our observations
yi=xi−3. Using the property of the mean:
yˉ=xˉ−3
μ=6−3=3
We have found our values: the new mean μ=3 and the new variance σ2=3. The ordered pair (μ,σ2) is (3,3).
Through this journey, we have seen that while the mean is a follower, shifting with the data, the variance is a leader, standing firm regardless of the shift. Keep this distinction in your toolkit, and no statistics problem will ever intimidate you again.