| Firm A | Firm B | |
| Number of wage earners | \[586\] | \[648\] |
| Average of weekly wages | Rs. \[52.5\] | Rs. \[47.5\] |
| Variance of the distribution of wages | \[100\] | \[121\] |
A) \[A,\,B\]
B) \[B,\,A\]
C) \[B,\,B\]
D) \[A,\,A\]
Correct Answer: C
Solution :
\[{{\sigma }_{1}}=\sqrt{100}=10\] and \[{{\sigma }_{2}}=\sqrt{121}=11\] \[C{{V}_{1}}=\frac{{{\sigma }_{1}}}{{{x}_{1}}}\times 100\] \[=\frac{10}{52.5}\times 100=19.05\] \[C{{V}_{2}}=\frac{11}{47.5}\times 100=23.16\] Hence, firm B shows greater variability and pays larger amount.
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