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
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?
This solution gives the step by step method for computing probability based on classical definition is included here.