The following results show the number of workers and the wages paid to them in two factories F₁ and F₂.

Question

The following results show the number of workers and the wages paid to them in two factories F 1 and F 2 . Which factory has more variation in wages?

Philoid · Accepted Answer

Mean wages of both the factories are the same, i.e., Rs. 5300.

To compare variation, we need to find out the coefficient of variation (CV).

We know, CV = , where SD is the standard deviation.

The variance of factory A is 100 and the variance of factory B is 81.

Now, SD of factory A =

And, SD of factory B =

Therefore,

The CV of factory A =

The CV of factory B =

Here, the CV of factory A is greater than the CV of factory B.

Hence, factory A has more variation.