Bereket works as a waiter in a local pizza restaurant where he waits on about 40...

Bereket works as a waiter in a local pizza restaurant where he waits on about 40 parties over a weekend of work and 10 parties each day he works during the week. After collecting some careful data on his tips over the last year, he believes the distribution of his tips has a model that is slightly skewed to the right, with a mean of $9.50 and a standard deviation of $5.40.

a) Explain why you cannot determine the probability that a given party will tip him at least $20

b) Can you estimate the probability that the next 4 parties will tip an average of at least $15? Explain

c) Is it likely that his 10 parties today will tip an average of at least $15?

d) Estimate the probability that he will earn at least $410 in tips over a weekend

e) What is the minimum he has to earn for a weekend to be in the best 12% of weekends?

Solutions

Expert Solution

The question is based on Central Limit Theorem (CLT). But the distribution given is right-skewed. Therefore, the standard notion of CLT can't be directly implemented, which makes the question more interesting.

orchestra answered 1 year ago

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