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More tips The waiter in Exercise 55 usually waits on about 40 parties over a weekend of

Chapter 17, Problem 57

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QUESTION:

More tips The waiter in Exercise 55 usually waits on about 40 parties over a weekend of work.

a) Estimate the probability that he will earn at least $500 in tips.

b) How much does he earn on the best 10% of such weekends?

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QUESTION:

More tips The waiter in Exercise 55 usually waits on about 40 parties over a weekend of work.

a) Estimate the probability that he will earn at least $500 in tips.

b) How much does he earn on the best 10% of such weekends?

ANSWER:

Step 1 of 3
(i) Independent condition : It is reasonable to think that the tips are mutually independent unless the service is somehow very bad in which case everyone will tip very low.

(ii) 10% condition : The tips of 40 parties certainly represent \(<10 \%\) of all tips.

(iii) Large enough sample: Size of the sample is 40 which is large enough.

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