Ans: Given: Mistaken mean of the $10$ observations $ = 45$
Mistaken variance of the $10$ observations $ = 16$
The correct reading is $25$ instead of $52$.
Use the formula $\overline x = \dfrac{{\left( {\sum\limits_{i = 1}^n {{x_i}} } \right)}}{n}$ to find the sum of all the observations. Subtract the incorrect value and add the correct value to find the correct total. Here $\overline x $ is the mean.
Use the formula ${\sigma ^2} = \dfrac{{\sum\limits_{i = 1}^n {{{\left( {{x_i}} \right)}^2}} }}{n} - {\left( {\overline x } \right)^2}$, where ${\sigma ^2}$ is the variance, to calculate $\sum\limits_{i = 1}^n {{{\left( {{x_i}} \right)}^2}}$. Now, subtract ${\left( {52} \right)^2}$ from $\sum\limits_{i = 1}^n {{{\left( {{x_i}} \right)}^2}}$ and add ${\left( {25} \right)^2}$.
The incorrect mean of the given $10$ observations is $45$. Assuming this mean as $\overline x $ and using the formula $\overline x = \dfrac{{\left( {\sum\limits_{i = 1}^n {{x_i}} } \right)}}{n}$,
$\Rightarrow 45 = \dfrac{{\left( {\sum\limits_{i = 1}^{10} {{x_i}} } \right)}}{{10}}$
$\Rightarrow \left( {\sum\limits_{i = 1}^{10} {{x_i}} } \right) = 450$
That means the sum of all the observations (including the incorrect one) is $450$. Since one reading is to be $25$ instead of $52$, so the correct sum must be,
$\Rightarrow {\left( {\sum\limits_{i = 1}^{10} {{x_i}} } \right)_{co}} = 450 - 52 + 25$
$\Rightarrow {\left( {\sum\limits_{i = 1}^{10} {{x_i}} } \right)_{co}} = 423$
Therefore, the correct mean is ${\overline x _{co}} = \dfrac{{{{\left( {\sum\limits_{i = 1}^{10} {{x_i}} } \right)}_{co}}}}{{10}} = 42.3$.
Now, using the formula ${\sigma ^2} = \dfrac{{\sum\limits_{i = 1}^n {{{\left( {{x_i}} \right)}^2}} }}{n} - {\left( {\overline x } \right)^2}$ for the variance of the incorrect mean, where ${\sigma ^2} = 16$ is provided,
$\Rightarrow \dfrac{{\left( {\sum\limits_{i = 1}^{10} {{{\left( {{x_i}} \right)}^2}} } \right)}}{{10}} - {\left( {45} \right)^2} = 16$
$\Rightarrow \sum\limits_{i = 1}^{10} {{{\left( {{x_i}} \right)}^2}} = 20410$
That means the incorrect sum of squares of all the observations is $20410$. Since $52$ is to be replaced with $25$, so the correct value of $\sum\limits_{i = 1}^{10} {{{\left( {{x_i}} \right)}^2}}$ is,
$\Rightarrow {\left( {\sum\limits_{i = 1}^{10} {{{\left( {{x_i}} \right)}^2}} } \right)_{co}} = 20410 - {\left( {52} \right)^2} + {\left( {25} \right)^2}$
$\Rightarrow {\left( {\sum\limits_{i = 1}^{10} {{{\left( {{x_i}} \right)}^2}} } \right)_{co}} = 18331$
Hence, the variance for the correct mean is,
$\Rightarrow {\left( {{\sigma ^2}} \right)_{co}} = \dfrac{{{{\left( {\sum\limits_{i = 1}^{10} {{{\left( {{x_i}} \right)}^2}} } \right)}_{co}}}}{{10}} - {\left( {\overline x } \right)^2}_{co}$
$\Rightarrow {\left( {{\sigma ^2}} \right)_{co}} = \dfrac{{18331}}{{10}} - {\left( {42.3} \right)^2}_{co}$
$\Rightarrow {\left( {{\sigma ^2}} \right)_{co}} = 43.81$