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.

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