We are given,
The total number of observations, $n = 100$.
Incorrect mean, $\overline x = 20$.
And, Incorrect standard deviation, $\sigma = 3$.
So, Mean is given by,
$\overline {\text{X}} = \frac{1}{{\text{n}}}\sum\limits_{{\text{i}} = 1}^{100} {{{\text{X}}_1}} $
$20 = \frac{1}{{100}}\sum\limits_{{\text{i}} = 1}^{20} {{{\text{X}}_1}} $
$\sum\limits_{i = 1}^{100} {{x_1}} = 20 \times 100$
$\sum\limits_{i = 1}^{100} {{x_1}} = 2000$
Thus, the incorrect sum of observations $ = 2000$.
Now, the correct sum of observations $ = 2000 – 21 – 21 – 18$
$ = 2000 – 60$
$ = 1940$
Hence, the correct mean $ = \frac{{correct{\text{ }}sum}}{{100 – 3}}$
$ = \frac{{1940}}{{97}}$
$ = 20$
Also, the standard deviation is given by,
$\sigma = \sqrt {\frac{1}{{\text{n}}}\sum\limits_{{\text{i}} = 1}^{\text{n}} {{{\text{X}}_1}} – \frac{1}{{{{\text{n}}^2}}}{{\left( {\sum\limits_{i = 1}^{\text{n}} {\text{X}} } \right)}^2}} $
\[3 = \sqrt {\frac{1}{n}\sum\limits_{i = 1}^n {X_1^2} – {{(\bar X)}^2}} \]
\[3 = \sqrt {\frac{1}{{100}} \times {\text{ Incorrect }}\sum {{\text{X}}_1^2} – {{(20)}^2}} \]
\[{\text{Incorrect }}\sum\limits_{i = 1}^n {X_1^2} = 100\left( {9 + 400} \right)\]
\[{\text{Incorrect }}\sum\limits_{i = 1}^n {X_1^2} = 40900\]
Now, \[Correct\sum\limits_{{\text{i}} = 1}^{\text{n}} {{\text{X}}_1^2} = Incorrect\sum\limits_{{\text{i}} = 1}^{\text{n}} {{\text{X}}_1^2} – {(21)^2} – {(21)^2} – {(18)^2}\]
\[{\text{ = 40900 – 441 – 441 – 324}}\]
\[{\text{ = 40900 – 1206}}\]
\[{\text{ = 39694}}\]
Therefore, the correct standard deviation is,
$ = \sqrt {\frac{{{\text{ Correct }}\sum {{\text{X}}_1^2} }}{{\text{n}}} – {{({\text{ Correct Mean }})}^2}} $
$ = \sqrt {\frac{{39694}}{{97}} – {{(20)}^2}} {\text{ }}$
$ = \sqrt {409.216 – 400} $
$ = 3.036{\text{ }}$