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
Answers
Answer:
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Step-by-step explanation:
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=33Combinedaveragemonthlywages=33
Combined standard deviation of the wages=3.8Combinedstandarddeviationofthewages=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}Combinedaveragemonthlywages=100+2004800+5100
=\frac{9900}{300}=3009900
=33=33
Therefore Combined average monthly wages=33Combinedaveragemonthlywages=33
Combined standard deviation of the wages=\frac{600+540}{100+200}Combinedstandarddeviationofthewages=100+200600+540
=\frac{1140}{300}=3001140
=3.8=3.8
Therefore Combined standard deviation of the wages=3.8Combinedstandarddeviationofthewages=3.8