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    In two factories A and B, engaged in the same industry in the area, the average week wages in rupees and the S.D. are as follows :
    Factory Average
    S.D. No. of employees
    A 34.5 5.0 476
    B 28.5 4.5 524
    (i) Which factory A or B pays out a larger amount on weekly wages?
    (ii) Which Factory A or B has greater variability in individual wages?
  • #139612
    i) Factory A pays out a larger amount on weekly wages.
    (ii) Factory B has greater variability in individual wages.

    With regards,
    Ravi
    "Time & Tides waits for none"

  • #139647
    Average weekly wages of factory A = 34.5 and
    Average weekly wages of factory B = 28.5
    Number of employees engaged in factory A = 476

    Number of employees engaged in factory B = 524
    So, weekly wages of factory A =476 x 34.5 =16422 and
    Weekly wages paid by factory B = 524 x 28.5 =14934

    Hence pay out by factory A is more.

    For answering the part (ii) of the question I have to find out the coefficient of variation.
    Coefficient of variation =( S.D. x 100 ) / average wages,
    So, coefficient of variation for factory A
    = ( 5.0 x 100 ) /34.5
    = 14.49
    Coefficient of variation for factory A = ( 4.5 x 100 ) / 28.5
    = 15.78
    Higher the coefficient of variation, higher the variability of individual wages.

    Hence the factory B is having higher variability in individual wages.


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