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

Total number of firms = 2 = A and B (Given)

                                            Firm A             Firm B

Number of Employees :        100                200

Average monthly wage :    4,800               5,100

Standard deviation :           600                    540

a) Firm B pays larger amount as wages

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

c) The combined average monthly wage and SD of wages of all the  employees in both the firms is -

= 4800 + 5100 / 100 + 200

= 9900/300

= 33

Combined SD = 600 + 540 / 100 + 200

= 1140/300

= 3.8