Please help out

Question

A recent study that the annual cost of maintaining a building in Accra averages 200 cedis with a variance of 260 cedis.If a tax of 30 % is introduced on all items associated with the maintenance of building i.e everything is made 30% more expensive.Calculate the variance of the annual cost of maintaining a building in Accra.

Answer 1

When you multiply the variance by a constant, the variance increases/decreases by the square of that constant. In this problem, the constant is 1.3 because there is a 30% increase in the price of each good.

1.3² = 1.69

Your new variance will be 260 * 1.69 = 439.4