Question
The number of employee, wages per employee and the variance of wages per employee for two factories are given below:
|
ltems |
Factory A |
Factory B |
|
No of Employees |
50 |
100 |
|
Average wages per employee (Rs.) |
120 |
85 |
|
Variance of wages per day (Rs.) |
9 |
16 |
(i) In which factory is there greater variation in the distribution of wage per employee?
(ii) Suppose in a factory B, the wages of an employee are wrongly noted as Rs. 120 instead of Rs. 100. What would be the corrected variance of factory B?
Solution
Calculation of Coefficient of variation in factory A: 
There is greater variance in distribution of wages in factory B.
Correcting Mean and Variance in factory B:
