An analysis of monthly wages paid to workers in two firms A and

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519.

The mean and standard deviation of marks obtained by 50 students of a class in three subjects, Mathematics, Physics and Chemistry are given below:

Subject               Mathematics                Physics                Chemistry
Mean                      42                               32                         40.9

Standard 
deviation                12                                15                          20
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520.

An analysis of monthly wages paid to workers in two firms A and B, belonging to the same industry, gives the following results:
                                                                                    Firm A                        Firm B
No. of wage earners                                                         586                            648
Mean of monthly wages                                                 Rs 5253                     Rs 5253
Variance of the distribution of wages                                   100                            121

(i) Which firm A or B pays larger amount as monthly wages?
(ii) Which firm A or B shows greater variability in individual wages?


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No of workers,             straight n subscript 1 space equals space 586
∴                         fraction numerator begin display style sum from blank to blank of end style straight X over denominator straight n subscript 1 end fraction equals top enclose straight X space space rightwards double arrow space space fraction numerator begin display style sum from blank to blank of end style straight X over denominator 586 end fraction space equals space 5253 space space rightwards double arrow space space sum from blank to blank of straight X space equals space Rs. space 5253 space cross times space 586 space equals space Rs. space 3078258   ...(i)
Mean monthly wages for firm B,
                                 top enclose straight Y space equals space Rs. space 5253
Number of workers,     straight n subscript 2 space equals space 648                                                                                                                

∴                     space space fraction numerator begin display style sum from blank to blank of straight Y end style over denominator straight n subscript 2 end fraction space equals space top enclose straight Y space rightwards double arrow space space fraction numerator begin display style sum from blank to blank of straight Y end style over denominator 648 end fraction space equals space 5253 space rightwards double arrow space sum from blank to blank of straight Y space equals space Rs. space 5253 space cross times space 648 space equals space Rs. space 3403944
From (i) and (ii), we conclude that firm A pays Rs 30,78,258 p.m. to its workers whereas firm B pays Rs 34,03,944 p.m. Hence, firm B pays more.

(ii) The means of the two datas
                           space space space top enclose straight X space equals space top enclose straight Y space equals space Rs space 5253
∴  To compare the variability, we shall use only the standard deviations.
Variance for firm A,               straight sigma subscript 1 superscript 2 space equals space 100 space rightwards double arrow space space straight S. straight D. space left parenthesis straight sigma subscript 1 right parenthesis space equals space square root of 100 space equals space 10
Variance for firm B,     space space space space space space space space straight sigma subscript 2 superscript 2 space equals space 121 space rightwards double arrow space straight S. straight D. space left parenthesis straight sigma subscript 2 right parenthesis space equals space square root of 121 space equals space 11 
                                    straight sigma subscript 2 greater than straight sigma subscript 1
rightwards double arrow  Wages for firm B are more variable. 
                                          

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