An analysis of the weekly 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 out the larger amount as weekly wages? (ii) Which firm A or B has greater variability in individual wages?

Question

Philoid · Accepted Answer

(i) Average weekly wages =

Total weekly wages = (Avg weekly wages)×(No. of workers)

Total weekly wages of Firm A = 52.5×586 = Rs 30765

Total weekly wages of Firm B = 47.5×648 = Rs 30780

Firm B pays a larger amount as Firm A

(ii) Here SD(firm A) 10 and SD (Firm B) = 11

Coefficient variance (Firm A) =

Cv (Firm A) = 19.04

Coefficient variance (Firm B) =

Cv (Firm B) = 23.15

Hence, Cv of firm B is greater that that of firm A, Firm B has greater variability in individual wages.

An analysis of the weekly 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 out the larger amount as weekly wages?(ii) Which firm A or B has greater variability in individual wages?

An analysis of the weekly 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 out the larger amount as weekly wages?

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