Question

An analysis of monthly wages paid to workers in two firms A and B, belonging to the same industry, gives the following result.

No. of wages earnes	586	648
Mean of monthly wages	Rs. 5253	Rs. 5253
Variance	100	121

1. Which firm A or B pays larger amount as monthly wages?

2. Which firm A or B, shows greater variability in individual wages?

Answer 1

1. Firm: A

Number of wages earners (n₁) = 586

Number of wages earners (\(\bar x_1\)) = 5253

Total monthly wages = 5253 × 586 = 3078258

Firm: B

Number of wages earners (n₁) = 648

Number of wages earners (\(\bar x\)) = 5253

Total monthly wages = 5253 × 648 = 3403944

2. Since both the firms have same mean of monthly wages, so the firm with greater variance will have more variability in individual wages. Thus firm B will have more variability in individual wages.