Berdine\'s Chicken Factory has several stores in the Hilton Head, South Carolina

Question

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        Total 500        a. What is the probability of a tip of $200 or more? (Round your answer to 2 decimal places.)   Probability b. Are the categories “$0 up to $20,” “$20 up to $50,” and so on considered mutually exclusive?    c. If the probabilities associated with each outcome were totaled, what would that total be?   Probability d. What is the probability of a tip of up to $50? (Round your answer to 2 decimal places.)   Probability e. What is the probability of a tip of less than $200? (Round your answer to 2 decimal places.)   Probability   

Explanation / Answer

a)

P(200 or more) = (100+75+75+50)/500 = 0.6 [ANSWER]

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b)

Yes, because they do not meet.

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c)

The total would be = 1. [ANSWER]

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d)

P(up to 50) = (200+100)/500 = 0.6 [ANSWER]

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e)

P(less than 200) = (200+100+75+75)/500 = 0.9 [ANSWER]

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