Berdine’s Chicken Factory has several stores in the Hilton

Chapter 5, Problem 44E

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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.

\(\begin{array}{|lc|}
\hline \text { Amount of Tip } & \text { Number } \\
\hline \$ 0 \text { up to } \$ 20 & 200 \\
20 \text { up to } 50 & 100 \\
50 \text { up to } 100 & 75 \\
100 \text { up to } 200 & 75 \\
200 \text { or more } & \underline{50} \\
\text { Total } & 500 \\
\hline
\end{array}\)

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

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?

d. What is the probability of a tip of up to $50 ?

e. What is the probability of a tip of less than $200 ?

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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.

\(\begin{array}{|lc|}
\hline \text { Amount of Tip } & \text { Number } \\
\hline \$ 0 \text { up to } \$ 20 & 200 \\
20 \text { up to } 50 & 100 \\
50 \text { up to } 100 & 75 \\
100 \text { up to } 200 & 75 \\
200 \text { or more } & \underline{50} \\
\text { Total } & 500 \\
\hline
\end{array}\)

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

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?

d. What is the probability of a tip of up to $50 ?

e. What is the probability of a tip of less than $200 ?

ANSWER:

Step 1 of 5

Given a study of 500 recent checks indicated the server earned.

Then the table is given below.

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

Our goal is:

      a). We need to find the probability of a tip of $200 or more.

      b). We need to find are the categories mutually exclusive.

      c). We need to find the total probability.

      d). We need to find the probability of a tip of up to $50.

      e). We need to find the probability of less than $200.

a). Now we have to find the probability of a tip of $200 or more.

From the above table the amount tip $200 or more = 50 (Number) and

The total number of amount tip is 500.

Then the probability of tip of $200 or more is

P (tip of $200 or more) = \(\frac{50}{500}\)

P (tip of $200 or more) = 0.1

Therefore, the probability of tip of $200 or more is 0.1.

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