If in the previous question, each worker is given a hike of 10% in wages, how are the Mean and Standard Deviation values affected?

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Solution

Average wage = Rs 200

Hike in wages = 10% of Rs 200

= Rs 20

Individual raise given to each worker = Rs 20

Total raise in wage = 50 × 20 = Rs 1,000

New Total Wage = Rs 10,000 + Rs 1000

= Rs 11,000

Initial Standard Deviation = Rs 40

So, New Standard Deviation = Rs 40 + 20

= Rs 60

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Average of daily wage of 50 workers of a factory was Rs.200 with a standard deviation of Rs.40. Each worker is given a raise of Rs.20. What are the new average daily wage and standard deviation? Have the wages becomes more or less uniform?

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If in the previous question, each worker is given a hike of 10% in wages, how are the Mean and Standard Deviation values affected?

Average wage = Rs 200 Hike in wages = 10% of Rs 200 = Rs 20 Individual raise given to each worker = Rs 20 Total raise in wage = 50 × 20 = Rs 1,000 New Total Wage = Rs 10,000 + Rs 1000 = Rs 11,000 Initial Standard Deviation = Rs 40 So, New Standard Deviation = Rs 40 + 20 = Rs 60

Average wage = Rs 200

Hike in wages = 10% of Rs 200

= Rs 20

Individual raise given to each worker = Rs 20

Total raise in wage = 50 × 20 = Rs 1,000

New Total Wage = Rs 10,000 + Rs 1000

= Rs 11,000

Initial Standard Deviation = Rs 40

So, New Standard Deviation = Rs 40 + 20

= Rs 60