An analysis of monthly wages paid to workers in two firms A and B, belonging to the same industry, gives the following results:

 Firm A Firm B No. of wages earners 586 648 Mean of monthly wages Rs.5253 Rs.5253 Variance of the distribution of wages 100 121

(i) Which firm A or B pays larger amount as monthly wages?

(ii) Which firm, A or B, shows greater variability in individual wages?

Asked by Abhisek | 1 year ago |  112

##### Solution :-

(i) From the given table,

Mean monthly wages of firm A = Rs 5253

and Number of wage earners = 586

Then,

Total amount paid = 586 × 5253

= Rs 3078258

Mean monthly wages of firm B = Rs 5253

Number of wage earners = 648

Then,

Total amount paid = 648 × 5253

= Rs 34,03,944

So, firm B pays larger amount as monthly wages.

(ii) Variance of firm A = 100

We know that, standard deviation (σ)= $$\sqrt{100}$$

=10

Variance of firm B = 121

Then,

Standard deviation (σ)=$$\sqrt{121}$$

=11

Hence the standard deviation is more in case of Firm B that means in firm B there is greater variability in individual wages.

Answered by Pragya Singh | 1 year ago

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