# Tip Average

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At the time Beth was hired as a server at a Restaurant, she was told she could average $20 a day in tips. Over the first 35 days she was employed at the restaurant, the mean daily amount of her tips was $24.85 with a standard deviation of $3.24. At the .01 significance level, can Beth conclude that she is earning an average of more than $20 in tip?

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At the time Beth was hired as a server at a Restaurant, she was told she could average $20 a day in tips. Over the first 35 days she was employed at the restaurant, the mean daily amount of her tips was $24.85 with a standard deviation of $3.24. At the .01 significance level, can Beth conclude that she is earning an average of more than $20 in tip?

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T Value = (Test Value - Mean)/(Standard Deviation)

<br> = (20 - 24.85)/(3.24) = -1.4969

<br>

<br>From the t-table, the T critical ...

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