Gmatcraze, basically what we are trying to do is add 2 more numbers to the set and keep the new SD close to the original SD.
So, first things first, find the original SD.
Mean =4, then thake the diff between all the numbers in the set and the mean.
0-4=4
2-4=2
4-4=0
6-4=2
8-4=4
Then, SQ each one and add them you will get 40 (4^2+2^2+0^0+2^2+4^2=40). The SD is the avg of these numbers so 40/5=8. Original SD = sq rt 8.
Now, we are looking for 2 numbers, when added to 40 and divided by 7 (because we add 2 new numbers to the original 5) will give us a new SD closest to the original sq rt 8.
Pick 2 numbers from the choices. Lets say 2&6 (d)
2-4(mean)=2
6-4=2
2^2+2^2=8 40+8=48 48/7 is a little less then 7. As you do this with the other choices as sachin_kapoor shows below, you will see that this is the best choice as it is closest to 8.
Make sence? Let me know if you need more info.