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.
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
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?