

Subject:
Economics
Category: Business and Money Asked by: rhemawordga List Price: $50.00 
Posted:
22 Nov 2005 12:04 PST
Expires: 22 Dec 2005 12:04 PST Question ID: 596351 
Bill's hamburger palace has several stores in the area of Gary, Indiana. 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 cheks indicated the server earned the following tip. Amount of tip Number $0 to $5 200 $5 to $10 100 $10 up to $20 75 $20 to $50 75 $50 or more 50 Total 500 What is the probability of a tip of $50 or more? Are the categories $0 to $5 up to $10 and so on considered mutually exclusive If the probabilities associated with each outcome were totaled, what would that total be? What is the probability of a tip of up to $10? What is the probably of a tip of less than $50? Thanks! 

Subject:
Re: Economics
Answered By: leapinglizardga on 22 Nov 2005 13:39 PST Rated: 
Dear rhemaword, The probability of getting a tip of $50 or more is 50/500 = .1 = 10%. The categories currently defined are mutually exclusive, since a server can only belong to one or the other. But a new category "$0 to $10" would not be mutually exclusive with the category "$0 to $5", for instance, because a server could simultaneously belong to both. If we total the probabilities of a complete set of mutually exclusive outcomes, the result must be 100%. The probability of getting a tip up to $10 is (200+100)/500 = 300/500 = .6 = 60%. We know from an earlier calculation that the probability of getting a tip of $50 or more is 10%, so the probability of getting a tip under $50 is 100%  10% = 90%. Regards, leapinglizard 
rhemawordga
rated this answer:
Thanks so very much for your help!! 

Subject:
Re: Economics
From: belronga on 22 Nov 2005 12:32 PST 
I could be wrong, but isn't it pretty much the following: 1. (50/500)=.10 or %10 2. Note sure, but I want to say yes 3. (200/500)+(100/500)+(100/500)+(75/500)+(75/500)+(50/100)=1 4. (300/500) = .60 or %60 5. (450/500) = .90 or %90 But of course this is just my free comment. 
Subject:
Re: Economics
From: belronga on 22 Nov 2005 12:34 PST 
This is really what three should be 3. (200/500)+(100/500)++(75/500)+(75/500)+(50/100)=1 
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