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The mean and standard deviation of six observations are $8$ and $4$, respectively. If each observation is multiplied by $3$, find the new mean and new standard deviation of the resulting observations.

We are given that,

The mean of six observations $ = 8$.

The standard deviation of six observations $ = 4$.

Let us consider the six observations as ${x_1}$, ${x_2}$, ${x_3}$,  ${x_4}$, ${x_5}$ and ${x_6}$.

The mean of six observations is given by,

$\bar x = \frac{{{x_1} + {x_2} + {x_3} + {x_4} + {x_5} + {x_6}}}{6} = 8$

When each observation is multiplied by $3$ then,

\[{y_i} = 3{x_i}\]

So, \[{x_i} = \frac{1}{3}{y_i}\], for $i = 1$ to $6$      …… (1)

Now, the new mean becomes,

$\bar y = \frac{{{y_1} + {y_2} + {y_3} + {y_4} + {y_5} + {y_6}}}{6}$

$\bar y = \frac{{3\left( {{x_1} + {x_2} + {x_3} + {x_4} + {x_5} + {x_6}} \right)}}{6}$

$\bar y = 3 \times 8$

$\bar y = 24$

Also, we have Standard deviation,

$\sigma  = \sqrt {\frac{1}{{\text{n}}}\sum\limits_{{\text{i}} = 1}^6 {{{\left( {{{\text{x}}_{\text{i}}} – \overline {\text{x}} } \right)}^2}} } $

Substituting the values and squaring on both sides,

${\sigma ^2} = \frac{1}{6}\sum\limits_{{\text{i}} = 1}^6 {{{\left( {{{\text{x}}_{\text{i}}} – \overline {\text{x}} } \right)}^2}} $

${\left( 4 \right)^2} = \frac{1}{6}\sum\limits_{{\text{i}} = 1}^6 {{{\left( {{{\text{x}}_{\text{i}}} – \overline {\text{x}} } \right)}^2}} $

$\sum\limits_{{\text{i}} = 1}^6 {{{\left( {{{\text{x}}_{\text{i}}} – \overline {\text{x}} } \right)}^2}}  = 96$                       …… (2)

From equations (1) and (2),

$\sum\limits_{{\text{i}} = 1}^6 {{{\left( {\frac{1}{3}{y_{\text{i}}} – \frac{1}{3}\overline y } \right)}^2}}  = 96$

$\sum\limits_{{\text{i}} = 1}^6 {\left( {\frac{1}{3}{y_{\text{i}}} – \frac{1}{3}\overline y } \right)}  = 864$

So, the new variance of the resulting observation $ = \frac{1}{6} \times 864$

$ = 144$

Hence, the new standard deviation of the resulting observation $ = \sqrt {144} $

$ = 12$