I have a set of numbers.
I have two cases:
- If I add a constant to them, does the mean, standard deviation and z score change?
What I think: Mean changes, std deviation doesn't change and z score doesn't change.
- If I reduce all the numbers by 5% does the mean, standard deviation and z score change?
What I think: Mean changes by 5%, standard deviation changes but the percentage difference remains the same, and the z score changes by 2.5%
Am I thinking correctly?
Suppose that you have $x_1, x_2, \cdots, x_n$. Using the definitions of those statistics, you have $$\bar{x} =\frac{\sum x_i}{n}$$ $$s=\sqrt{\frac{\sum (x_i-\bar{x})^2}{n-1}}$$ $$z-score \; of\; x_i=\frac{x_i-\bar{x}}{s}$$ Now if you add a constant to all observations, it is easy to see that $\bar{x}$ changes by the same amount, but the other two statistics remain the same.
If you reduce all numbers by 5%, each $x_i$ becomes $0.95x_i$. Thus, both $\bar{x}$ and $s$ decrease by 5% as well, but the z-score remains the same.