Concept:Mean depends on both change of origin and scale; variance depends on scale but is independent of change of origin.
Explanation:For mean:
If a constant
C is added or subtracted from each observation, the mean increases or decreases by
C.
If each observation is multiplied or divided by
C, the mean is multiplied or divided by
C.
Thus, mean is affected by both change of origin and change of scale; it is
not independent of either.
Hence statement 1 (“Mean is independent of change in scale and change in origin”) is false.
For variance:
If a constant
C is added to each observation,
Var(X+C)=Var(X) — variance remains unchanged (independent of origin).
If each observation is multiplied by
C,
Var(CX)=C2Var(X) — variance changes with scale (dependent on scale).
Statement 2 says “Variance is independent of change in scale but not in origin” — this is exactly backwards: variance is independent of origin but dependent on scale. So statement 2 is also false.
Answer:Neither statement 1 nor statement 2 is correct.