Question

1) Berdine's Chicken Factory has several stores in the Hilton Head, South Carolina, area. When interviewing applicants for server positions, the owner would like to include information on the amount of tip a server can expect to earn per check (or bill). A study of 500 recent checks indicated the server earned the following amounts in tips per 8-hour shift. Amount of Tip ($) Number 0 up to 20 200 20 up to 50 100 50 up to 100 75 100 up to 200 75 200 or more 50 a) What is the probability of a tip of $200 or more? b) What is the probability of a tip of up to $50?

Answer 1

a) 0.1 = 10% probability of a tip of $200 or more.

b) 0.4 = 40% probability of a tip of up to $50.

Explanation:

A probability is the number of desired outcomes divided by the number of total outcomes.

Distribution:

Total of 500 checks.

200 with tips in the interval of 0-20.

100 with tips in the interval of 20-50.

75 with tips in the interval of 50-100.

75 with tips in the interval of 100-200.

50 with tips of 200 or more.

a) What is the probability of a tip of $200 or more?

50 out of 500. So

`p = (50)/(500) = 0.1`

0.1 = 10% probability of a tip of $200 or more.

b) What is the probability of a tip of up to $50?

200 out of 500. So

`p = (200)/(500) = 0.4`

0.4 = 40% probability of a tip of up to $50.