Google Answers Logo
View Question
 
Q: Economics ( Answered 5 out of 5 stars,   2 Comments )
Question  
Subject: Economics
Category: Business and Money
Asked by: rhemaword-ga
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!
Answer  
Subject: Re: Economics
Answered By: leapinglizard-ga on 22 Nov 2005 13:39 PST
Rated:5 out of 5 stars
 
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
rhemaword-ga rated this answer:5 out of 5 stars
Thanks so very much for your help!!

Comments  
Subject: Re: Economics
From: belron-ga 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: belron-ga 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

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy