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?

Solution:-

(i) According to the  given table,

Mean monthly wages of firm A = Rs

   

and Number of wage earners =

   

Then,

Total amount paid =

   

= Rs

   

Mean monthly wages of firm B = Rs

   

Number of wage earners =

   

Then,

Total amount paid =

   

= Rs

   

therefore, firm B pays larger amount as monthly wages.

(ii) given Variance of firm A =

   

So, standard deviation

   

=

   

Given Variance of firm B =

   

Then,

Standard deviation

   

=

   

Therefore, the standard deviation is more in case of Firm B that means in firm B there is greater variability in individual wages.