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Multiple choice: Select the best answer for Exercises 25 to 30. When Sam goes to a
Chapter 2, Problem 26(choose chapter or problem)
Multiple choice: Select the best answer for Exercises 25 to 30. When Sam goes to a restaurant, he always tips the server $2 plus 10% of the cost of the meal. If Sams distribution of meal costs has a mean of $9 and a standard deviation of $3, what are the mean and standard deviation of the distribution of his tips? (a) $2.90, $0.30 (b) $2.90, $2.30 (c) $9.00, $3.00 (d) $11.00, $2.00 (e) $2.00, $0.90
Questions & Answers
QUESTION:
Multiple choice: Select the best answer for Exercises 25 to 30. When Sam goes to a restaurant, he always tips the server $2 plus 10% of the cost of the meal. If Sams distribution of meal costs has a mean of $9 and a standard deviation of $3, what are the mean and standard deviation of the distribution of his tips? (a) $2.90, $0.30 (b) $2.90, $2.30 (c) $9.00, $3.00 (d) $11.00, $2.00 (e) $2.00, $0.90
ANSWER:Step 1 of 2
Given,
Mean meal cost = $9
Standard deviation of meal cost = $3
It’s also given that Sam always tips the server $2 plus 10% of the cost of the meal. We have to determine the mean and standard deviation of the distribution of his tips