An analysis of the weekly wages paid to workers in two firms A and B,

1.	An analysis of the weekly wages paid to workers in two firms A and B, belonging to the same industry gives the following results:Firm A Firm BNo. of wage earners 586 648Average weekly wages Rs. 52.5Rs. 47.5The Variance of distribution of wages100 121(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?
Answer» (i) Average weekly wages = \(\frac{Total\,weekly\,wages} {No.\,of \,workers}\) Total weekly wages = (Avg weekly wages) x (No. of workers) Total weekly wages of Firm A = 52.5 x 586 = Rs 30765 Total weekly wages of Firm B = 47.5 x 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) = \(\frac{10}{52.5}\times 100\) Cv (Firm A) = 19.04 Coefficient variance (Firm B) = \(\frac{11}{47.5}\times100\) 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:Firm A Firm BNo. of wage earners 586 648Average weekly wages Rs. 52.5Rs. 47.5The Variance of distribution of wages100 121(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?

Answer»

(i) Average weekly wages = \(\frac{Total\,weekly\,wages} {No.\,of \,workers}\)

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

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

Total weekly wages of Firm B = 47.5 x 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) = \(\frac{10}{52.5}\times 100\)

Cv (Firm A) = 19.04

Coefficient variance (Firm B) = \(\frac{11}{47.5}\times100\)

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.