Question

4. A random variable X has a mean of 10 and a standard deviation of 3. If 2 is added to each value of X, what will the new mean and standard deviation be?

Answer 1

Adding 2 to each value of the random variable $X$ makes a new random variable $X+2$. Its mean would be

$E[X+2]=E[X]+E[2]=E[X]+2$

since expectation is linear, and the expected value of a constant is that constant. $E[X]$ is the mean of $X$, so the new mean would be

$E[X+2]=10+2=12$

The variance of a random variable $X$ is

$V[X]=E[X^2]-E[X]^2$

so the variance of $X+2$ would be

$V[X+2]=E[(X+2)^2]-E[X+2]^2$

We already know $E[X+2]=12$, so simplifying above, we get

$V[X+2]=E[X^2+4X+4]-12^2$

$V[X+2]=E[X^2]+4E[X]+4-12^2$

$V[X+2]=(V[X]+E[X]^2)+4E[X]-140$

Standard deviation is the square root of variance, so $V[X]=3^2=9$.

$\implies V[X+2]=(9+10^2)+4(10)-140=9$

so the standard deviation remains unchanged at 3.

NB: More generally, the variance of $aX+b$ for $a,b\in\mathbb R$ is

$V[aX+b]=a^2V[X]+b^2V[1]$

but the variance of a constant is 0. In this case, $a=1$, so we're left with $V[X+2]=V[X]$, as expected.