PRC-2 · Chapter 8 · Question 56 of 60
If every single observation in a dataset is systematically multiplied by a constant factor of 3, what mathematical effect will this have on the arithmetic mean?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It will be multiplied by exactly 3.
Explanation
The arithmetic mean is highly sensitive to a change of scale. If every observation is multiplied by a constant, the resulting mean will be strictly multiplied by that exact same constant.
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