Measures of location, such as the mean, median, and mode, are directly affected by every part of the coding formula.
If the data is coded as , the new mean is calculated by applying the same operations to the original mean: .
To retrieve the original mean from coded results, you must reverse the operations in the opposite order: .
Measures of spread, such as standard deviation and range, describe the distance between data points and are only affected by multiplication or division.
Adding or subtracting a constant () does not change the spread because every point moves by the same amount, keeping the distances between them identical.
When multiplying by a constant (), the standard deviation scales by the modulus (absolute value) of that constant: .
The variance is affected by the square of the multiplier, meaning .
It is vital to distinguish between how location and spread respond to additive versus multiplicative changes.
| Statistic | Addition/Subtraction () | Multiplication/Division () |
|---|---|---|
| Mean / Median | Changes by | Changes by |
| Std. Deviation | No Change | Changes by $ |
| Variance | No Change | Changes by |
When using an assumed mean , the coded data is often represented as . The sum of this coded data is .
The variance of the original data can be calculated directly from the coded summary statistics: .
Note that because subtraction does not affect spread, the variance of is exactly the same as the variance of .
Check the Multiplier: Always use the absolute value of the multiplier when adjusting the standard deviation; spread can never be negative.
Reverse Operations: When finding the original mean, ensure you solve the equation for correctly by subtracting before dividing by .
Units Matter: Remember that standard deviation maintains the original units, while variance uses squared units. Coding must respect these dimensions.
Sanity Check: If you add 10 to every score in a test, the average should go up by 10, but the 'gap' between the highest and lowest student should remain the same.