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Business Mathematics and Basic Statistics · Ch 4 — Measures of Central Tendency

Mean — Linear Transformation Rule

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Mean — Linear Transformation Rule

It is often useful to know how the mean of a data set changes when every observation is transformed in the same simple way — for example, converting every temperature from Celsius to Fahrenheit, every weight from kilograms to pounds, or (as in the step-deviation method of Section 2) shifting and scaling every class mark to make the arithmetic easier.

Note

Linear Transformation Rule for the Mean

If a new variable yy is formed from xx by the linear relation

y=ax+b(a,b constants)y = ax + b \qquad (a, b \text{ constants})

then the mean of yy is related to the mean of xx by exactly the same rule:

yˉ=axˉ+b\bar{y} = a\bar{x} + b

Why this is true. For a frequency distribution,

yˉ=∑fy∑f=∑f(ax+b)∑f=a⋅∑fx∑f+b⋅∑f∑f=axˉ+b\bar{y} = \dfrac{\sum fy}{\sum f} = \dfrac{\sum f(ax+b)}{\sum f} = a\cdot\dfrac{\sum fx}{\sum f} + b\cdot\dfrac{\sum f}{\sum f} = a\bar{x} + b

since ∑f/∑f=1\sum f/\sum f = 1.

This rule is exactly the algebra behind the step-deviation method: the step-deviation u=(x−A)/hu = (x-A)/h is itself a linear transformation of xx (with a=1/ha = 1/h and b=−A/hb = -A/h), so once uˉ\bar{u} is found, the actual mean is recovered by reversing the transformation, x=hu+Ax = hu + A, giving xˉ=huˉ+A\bar{x} = h\bar{u} + A — precisely the step-deviation formula of Section 2. Worked Example 8 demonstrates this connection explicitly. …

Definition 1Linear Transformation of the Mean

If y=ax+by = ax + b for constants a,ba, b, then yˉ=axˉ+b\bar{y} = a\bar{x} + b — the mean transforms the same way the data itself does …