medium · GMAT Quant

A fintech firm tests transaction processing latency across two server regions with equal mean latencies. Region Alpha handles 400 transactions with a latency variance of 15 ms^2. Region Beta handles 100 transactions with a latency variance of 40 ms^2.

What is the combined variance of latency, in ms^2, for all 500 transactions?

  1. 27.5
  2. 35
  3. 20
  4. 55
  5. 10000

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