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Variance Under Scaling
If:
$$y_i=bx_i$$
then:
$$\sigma_y^2=b^2\sigma_x^2$$
Usage
- Used when every observation is multiplied by the same constant.
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Variance Under Scaling
If:
$$y_i=bx_i$$
then:
$$\sigma_y^2=b^2\sigma_x^2$$
Usage
- Used when every observation is multiplied by the same constant.
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