Average daily wage of 50 workers of a factory was Rs 200 with a Standard Deviation of Rs 40. Each worker is given a raise of Rs 20. What is the new average daily wage and Standard Deviation? Have the wages become more or less uniform?
N = 50
= 200
s = 40
So, Total Wages = 200 × 50
= Rs 10,000
Now, increased wage rate = Rs 20
Total raise = 50 × 20 = Rs 1,000
Total Wage after raise = 10,000 + 1,000
=Rs 11,000
= Rs 220
Initial Standard Deviation = Rs 40
So, New Standard Deviation = Rs 40 + Rs 20
= Rs 60
Note: New Standard Deviation will rise by the same amount as the wage of each worker has increased.