Exercise · ZW-VARIANCE-009 · ★★☆ Intermediate

If \(\operatorname{Var}(X)=5\), what is \(\operatorname{Var}(-2X)\)?

Choose one option.

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  • A. \(20\)

Explanation

\(\operatorname{Var}(-2X)=(-2)^2\operatorname{Var}(X)=20\): the sign disappears and a variance is never negative.

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Review the concept: Variance

The variance \(\operatorname{Var}(X)\) of a random variable \(X\) measures how spread out its values are around its expectation \(E\): it is the expected value of the squared deviation.

\[\operatorname{Var}(X)=E\big[(X-E[X])^2\big]\]

More practice problems: variance

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