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 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!```
 Subject: Re: Economics Answered By: leapinglizard-ga 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```
 rhemaword-ga rated this answer: `Thanks so very much for your help!!`

 ```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.```
 ```This is really what three should be 3. (200/500)+(100/500)++(75/500)+(75/500)+(50/100)=1```