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20 February, 16:17

When sam goes to a restaurant he always tips the server $2 plus 10% of the cost of the meal is sams distribution of meal costs has a mean of $9 and a standard deviation of $3 what are the mean and standard deviation of of the distribution of his tips?

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  1. 20 February, 18:26
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    Given tip, T = $2.00 + (0.1 X C)

    where C = cost of meal

    Mean of cost of meals, M = $9.00

    Standard deviation of meal, Sm = $3.00

    If C = M,

    Mean of tips Mt = $2.00 + (0.1 X $9.00)

    Mt = $2.90, mean of tips

    Standard deviation of tips, St = square root of mean of tips

    St = ($2.90) ^0.5

    St = $1.70, standard deviation of tips

    Therefore, mean of tips = $2.90 and standard deviation of tips = $1.70
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