Understanding the Concept:
Variance and standard deviation measure the spread or dispersion of data.
A very important property is:
Adding or subtracting a constant from every observation changes the mean but does not change the variance or standard deviation.
Multiplying every observation by a constant changes the variance and standard deviation accordingly.
Thus, whenever only addition or subtraction is involved, the spread of the data remains unchanged.
Step 1: Write the given variance.
We are given:
\[
\text{Variance}=16
\]
We know:
\[
\text{Standard Deviation}
=
\sqrt{\text{Variance}}
\]
Therefore,
\[
\text{Standard Deviation}
=
\sqrt{16}
\]
\[
=4
\]
Step 2: Understand the effect of adding and subtracting constants.
According to the question:
First, \(7\) is added to each observation.
Then, \(5\) is subtracted from each resulting observation.
Net effect:
\[
x \to x+7-5
\]
\[
x \to x+2
\]
Thus, every observation increases by a constant value \(2\).
Adding a constant affects only the mean, not the variance or standard deviation.
Hence, the variance remains:
\[
16
\]
and therefore the standard deviation remains:
\[
\sqrt{16}=4
\]
Thus, the new standard deviation is:
\[
\boxed{4}
\]