3. 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 |
||
Mean of monthly wages |
||
Variance of the distribution of wages |
(ii) Which firm, A or B, shows greater variability in individual wages?
Given, Variance of firm A = 100
Standard Deviation =
Again, Variance of firm B = 121
Standard Deviation =
Since , firm B has greater variability in individual wages.