If a & b are constants, then Var (a + bX) equal to_________________?
Correct answer: B. b2 Var(X)
- A. Var(bX) + a
- B. b2 Var(X)
- C. b Var(x)
- D. None of these
Explanation
Adding a constant does not change variance, while multiplying a variable by b multiplies its variance by b². Thus Var(a+bX)=b²Var(X).
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