Let X be a random variable with mean 6 and standard deviation 4. If L = 8-3X what is the standard deviation of L?
E(X ) = mean for x = 6
We calculate the variance of x by using the standard deviation of
Standard deviation (x) = 4
Formula
Var( a - b*X) = b2 * Var(X)
Var(L) = 144
Now we find a standard deviation of L
Another way
Standard deiation ( a - b*x ) = b * standard deviation (x)
Standard deviation of (L ) = standard deviation ( 8 - 3*x)
Standard deviation of (L ) = 3* Standard deviation (x)
We have standard deviation of (x) = 4
Standard deviation of (L ) = 3*4 = 12
Final answer:-
Standard deviation of (L ) = 12
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