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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 results: (ii) Which firm, A or B , shows greater variability in individual wages?

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 $586$ $648$ Mean of monthly wages $Rs\hspace {1mm} 5253$ $Rs\hspace {1mm} 5253$ Variance of the distribution of wages $100$ $121$

(ii) Which firm, A or B, shows greater variability in individual wages?

Views

Given, Variance of firm A = 100

Standard Deviation = $\sigma_A = \sqrt{Variance}= \sqrt{100} = 10$

Again, Variance of firm B = 121

Standard Deviation = $\sigma_B = \sqrt{Variance}= \sqrt{121} = 11$

Since $\sigma_B>\sigma_A$, firm B has greater variability in individual wages.

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