Question

For two firms A and B belonging to same industry, the following details are available :

Firm A Firm B

Number of Employees : 100

Average monthly wage : Rs. 4,800

Standard deviation : Rs. 600

200

Rs. 5,100

Rs. 540

Find

(a) Which firm pays larger amount as wages?

(b) Which firm shows greater variability in the distribution of wages?

(c) Find combined average monthly wage and the standard deviation of the wages of all the

employees in both the firms.​

Answer 1

a) Firm pays larger amount as wages is firm B

b) Firm shows greater variability in the distribution of wages is firm B

c) The combined average monthly wage and the standard deviation of the wages of all the  employees in both the firms :​

$Combined average monthly wages=33$

$Combined standard deviation of the wages=3.8$

Step-by-step explanation:

Given that two firms are A and B

The following details are available :

                                             Firm A                    Firm B

Number of Employees :        100                          200

Average monthly wage :  Rs. 4,800                 Rs. 5,100

Standard deviation :           Rs. 600                   Rs. 540

a) Firm pays larger amount as wages is firm B

Because the firm A is less than firm B ( from the table given )

b) Firm shows greater variability in the distribution of wages is firm B

Because the firm B is greater than firm A ( from the table given )

c) The combined average monthly wage and the standard deviation of the wages of all the  employees in both the firms :​

$Combined average monthly wages=\frac{4800+5100}{100+200}$

$=\frac{9900}{300}$

$=33$

Therefore $Combined average monthly wages=33$

$Combined standard deviation of the wages=\frac{600+540}{100+200}$

$=\frac{1140}{300}$

$=3.8$

Therefore $Combined standard deviation of the wages=3.8$