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An analysis of monthly wages paid to workers in two firms A and B, belonging to the same industry, gives the following result.No. of wages earnes586648Mean of monthly wagesRs. 5253Rs. 5253Variance1001211. Which firm A or B pays larger amount as monthly wages?2. Which firm A or B, shows greater variability in individual wages? |
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Answer» 1. Firm: A Number of wages earners (n1) = 586 Number of wages earners (\(\bar x_1\)) = 5253 Total monthly wages = 5253 × 586 = 3078258 Firm: B Number of wages earners (n1) = 648 Number of wages earners (\(\bar x\)) = 5253 Total monthly wages = 5253 × 648 = 3403944 2. 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. |
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