Analyzing the Setup
To correct our statistics, we must first understand the fundamental definitions. The mean, xˉ, is the center of gravity of our data, defined as:
The variance, σ2, is the measure of spread, defined as:
We are given n=20, xˉold=10, and σold2=4. Before we can fix the error, we need the raw totals.
Deconstructing the Data
The old sum is calculated as:
∑xi,old=n⋅xˉold=20⋅10=200
To find the sum of squares, we rearrange the variance formula:
∑xi,old2=n(σ2+xˉ2)=20(4+102)=20(104)=2080
We now have our raw materials: a sum of 200 and a sum of squares of 2080.
Surgical Precision
We perform the correction by removing the incorrect value 9 and inserting the correct value 11. Our new sum becomes:
The new mean is:
The variance is more sensitive, so we must update the sum of squares by subtracting the square of the wrong value and adding the square of the right value:
∑xi,new2=2080−92+112=2080−81+121=2120
The Final Reveal
With our new sum of squares, ∑xi,new2=2120, and our new mean, xˉnew=10.1, we calculate the correct variance using the formula:
σnew2=n∑xi,new2−(xˉnew)2
Substituting the values:
This simplifies to:
The corrected variance is 3.99.