Question -
| 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?
Answer -
(i) From the giventable,
Mean monthly wages offirm A = Rs 5253
and Number of wageearners = 586
Then,
Total amount paid =586 × 5253
= Rs 3078258
Mean monthly wages offirm B = Rs 5253
Number of wage earners= 648
Then,
Total amount paid =648 × 5253
= Rs 34,03,944
So, firm B pays largeramount as monthly wages.
(ii) Variance of firmA = 100
We know that, standarddeviation (σ)= √100
=10
Variance of firm B =121
Then,
Standard deviation(σ)=√(121 )
=11
Hence the standarddeviation is more in case of Firm B that means in firm B there is greatervariability in individual wages.