Question: Berdines Chicken Factory has several retail stores. 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 tips.
Amount of Tip ($) Number
$0 to under $5 200
5 to under 10 100
10 to under 20 75
20 to under 50 75
50 or more 50
Total 500
a) What is the probability of a tip of $50 or more?
b) Are the categories "$0 to under $5", "5 to under 10", and so on considered mutually exclusive?
c) If the probabilities associated with each outcome were totaled, what would the total be?
d) What is the probability of a tip of up to $10?
e) What is the probability of a tip of less than $50?