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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(choose chapter or problem)
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?
Questions & Answers
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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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