Posted: March 28th, 2017

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 tip.

Amount of Tip Number

$ 0 up to $ 5 200

5 up to 10 100

10 up to 20 75

20 up to 50 75

50 or more 50

Total 500

1. What is the probability of a tip of $50 or more?

2. Are the categories “$0 up to $5,” “$5 up to $10,” and so on considered mutually exclusive? If the probabilities associated with each outcome were totaled, what would that total be?

3. What is the probability of a tip of up to $10?

4. What is the probability of a tip of less than $50?

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