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The following results show the number of workers and the wages paid to them in two factories F1 and F2.FactoryABNumber of workers36003200Mean wagesRs. 5300Rs. 5300Variance of distribution of wages10081Which factory has more variation in wages? |
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Answer» Mean wages of both the factories are the same, i.e., Rs. 5300. To compare variation, we need to find out the coefficient of variation (CV) We know, CV = , \(\frac{SD}{Mean}\times100\) where SD is the standard deviation. The variance of factory A is 100 and the variance of factory B is 81. Now, SD of factory A = \(\sqrt{100}\) = 10 And, SD of factory B = \(\sqrt{81}\) = 9 Therefore, The CV of factory A = \(\frac{10}{5300}\times100\) = 0.189 The CV of factory B = \(\frac{9}{5300}\times100\) = 0.169 Here, the CV of factory A is greater than the CV of factory B. Hence, factory A has more variation. |
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