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 wage 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 ?

Question

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 wage 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 ?

Filo · Accepted Answer

(i) Number of wage earner in firm A=586Mean of monthly wage of firm A=Rs5253 Mean of monthly age of firm A = No. of wage earners in firm A Total amount paid ​5253=586Total amount paid​Total amount paid by Firm A =5253×586Number of wage earner in firm B=648Mean of monthly wage of firm B=Rs5253 Mean of monthly age of firm B = No. of wage earners in firm B Total amount paid ​5253=648Total amount paid​Total amount paid by Firm B =5253×648Clearly, firm B paid larger amount as monthly wage.(ii) Variance of the distribution of wages in firm A   (σ12​) =100  ∴ Standard deviation of the distribution of wages in firm A(σ1​)=100​=10  Variance of the distribution of wages in firm   B (σ12​) =121  ∴  Standard deviation of the distribution of wages in firm   B(σ2​)=121​=11  The mean of monthly wages of both the firms is same i.e.5253. So, the firm with greater standard deviation will have more variability. Thus firm B has greater variability in the individual wages

Question Text	An analysis of monthly wages paid to workers in two firms $A$ and $B$ belonging to the same industry gives the following results : (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 Type	Text solution:1
Upvotes	150

Text solutionVerified

Practice questions from similar books