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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 ?


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.


Mathematics

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