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?
• 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"

• 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.