An analysis of monthly wages paid to workers in two firms A and B, belonging to the same industry, gives the following results:
(i) Which firm A or B pays larger amount as monthly wages?
(ii) Which firm, A or B, shows greater variability in individual wages?
Here
Mean monthly wages of firm A = 5253
No. of wage earners = 586
Total amount paid = 586 × 5253 = 3078258
Mean monthly wages of firm B = 5253
No. of wage earners = 648
Total amount paid = 648 × 5253 = 340 3944
(i) Hence the firm B pays larger amount as monthly wages.
(ii) Variance of firm A = 100
⇒ standard deviation (σ)= √100=10
Variance of firm B = 121
⇒ Standard deviation (σ)=√(121 )=11
Since the standard deviation is more in case of Firm B that means in firm B there is greater variability in individual wages.