For Firm A,

Step 1:

Number of wages earners = 586 (given)

Mean of monthly wages $=\bar {X} =Rs. 5253$ (given)

Amount paid by the firm A= Number of wage earners $\times $ mean of monthly wages.

$\qquad= 586 \times 5253$

$\qquad= Rs. 3078258$

Step 2:

Variance of the distribution of wages=100(given)

Standard deviation $=\sqrt{variance}$

$\qquad= \sqrt{100}$

$\qquad=10$

Step 3:

Coefficient of variation $=\large\frac{\sigma}{\bar{X}} $$ \times 100$

$\qquad= \large\frac{10}{5253}$

$\qquad= \large\frac{1000}{5253}$

$\qquad= 0.19$

For firm B

Step 1:

Number of wages earners = 648 (given)

Mean of monthly wages $=Rs. 5253$ (given)

Amount paid by the firm B= Number of wage earners $\times $ mean of monthly wages.

$\qquad= 648 \times 5253$

$\qquad= Rs. 3403944$

Step 2:

Variance of the distribution of wages=121(given)

Standard deviation $=\sqrt{variance}$

$\qquad= \sqrt {121}$

$\qquad=11$

Step 3:

Coefficient of variation $=\large\frac{\sigma}{\bar{X}} $$ \times 100$

$\qquad= \large\frac{11}{5253} \times 100$

$\qquad= \large\frac{1100}{5253}$$=0.21$

COMPARISON:

(i) Monthly wages paid by firm $A= Rs. 3078258$

Monthly wages paid by firm $B= Rs. 3403944$

$\therefore$ Firm B pays larger amount of monthly wages.

(ii) Variability of the firm depends upon coefficient of variation.

Higher the coefficient of variation, higher the variability

$\therefore $ coefficient of variation of firm B is higher .

Hence , firm B shows greater variability in individual wages.

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