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Q: Economics ( Answered 5 out of 5 stars,   2 Comments )
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?

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%.

rhemaword-ga rated this answer:5 out of 5 stars
Thanks so very much for your help!!

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

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