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# Tip Standard Deviation

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At the time she was hired as a server at a restaurant, Beth was told she could average more than \$20.00 a day in tips. Over the first 35 days she was employed, 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 \$20.00 in tips?

#### Solution Preview

N (number of samples) = 35
<br>s (sample standard deviation ) = \$3.24
<br>m (sample mean) = \$24.85
<br>
<br>X is the random variable that describes tips earened in a day,
<br>u is the mean of X and
<br>
<br>We want to test the null hypothesis H0 : u = 20.00
<br>against ...

#### Solution Summary

At the time she was hired as a server at a restaurant, Beth was told she could average more than \$20.00 a day in tips. Over the first 35 days she was employed, 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 \$20.00 in tips?

\$2.49