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If the mean of 25 observations is 27 and each observation is decreased by 7, what will be the new mean ?

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Answer Is 20

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Mean of 25 observations = 27 (given)

Total observations = 25

⇒ Sum of 25 observations = 27 × 25 = 675

When each observation is decreased by 7, then

New Sum is 675 − 25 × 7 = 500

New Mean = 500/25 = 20

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