CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
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 ?

Open in App
Solution

(i) Firm A : Number of wages earners (n1) = 586

Mean of monthly wages (¯¯¯¯¯x1) = Rs 5253

Total monthly wages = 5253 × 586 = Rs 3078258

Firm B : Number of wages earners (n2) = 648

Mean of monthly wages (¯¯¯¯¯x2) = Rs 5253

Total monthly wages = 5253 ×586 = Rs 3403944.

(ii) Since both the firms have same mean of monthly wages, so the firm with greater variance will have more variability in individual wages. Thus firm B will have more variability in individual wages.


flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
The Cost Curve
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon