Example 13 - Two plants A and B of a factory show results - Co-efficient of variation

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  1. Chapter 15 Class 11 Statistics
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Example 13 Two plants A and B of a factory show following results about the number of workers and the wages paid to them. In which plant, A or B is there greater variability in individual wages? To compare the variation, we have to calculate coefficient of variation Coefficient of variation(C.V.) = ๐‘บ๐’•๐’‚๐’๐’…๐’‚๐’“๐’… ๐‘ซ๐’†๐’—๐’Š๐’‚๐’•๐’Š๐’๐’๏ทฎ๐‘€๐‘’๐‘Ž๐‘›๏ทฏ ร— 100 Since, Average monthly wages are same (mean are equal) , we compare standard deviation of the distribution Variance in plant A = 81 Standard deviation in plant A = ๏ทฎ๐‘‰๐‘Ž๐‘Ÿ๐‘–๐‘Ž๐‘›๐‘๐‘’๏ทฏ = ๏ทฎ81๏ทฏ = ๏ทฎ92๏ทฏ = 9 Variance in plant B = 100 Standard deviation in plant B = ๏ทฎ๐‘‰๐‘Ž๐‘Ÿ๐‘–๐‘Ž๐‘›๐‘๐‘’๏ทฏ = ๏ทฎ100๏ทฏ = ๏ทฎ102๏ทฏ = 10 Since the average monthly wages in both the plants is same, i.e., Rs.2500, Therefore, the plant with greater standard deviation will have more variability. Thus, the plant B has greater variability in the individual wages.

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