Question

A restaurant offers weekly bonuses to its best waiters. At the end of every week it...

A restaurant offers weekly bonuses to its best waiters. At the end of every week it counts the value of total tips. The average amount was $136 with a standard deviation of $18. The data resembles the normal curve.

a. Estimate the 70th percentile.

b. The owner says that only those who earn above the 92nd percentile will earn the bonus. How much in tips must the waiters collect to earn the bonus

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Answer #1

A) 70th percentile means cumulative probability of .70 for the normal distribution with mean $136 and standard deviation of $18

This can be found through using the formula = NORM.INV (Probability,Mean,Standard deviation)

= NORM.INV (0.7,136,18)

Answer is $145.44

b) Only waiters who earn more than 92nd percentile will earn bonus. 92nd percentile can be found through the below formula

= NORM.INV (Probability,Mean,Standard deviation)

= NORM.INV (0.92,136,18)

= Answer is tips Greater than $161.29

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