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When Sam goes to a restaurant, he always tips the server \(2plus10%of the cost of the meal. If Sam’s distribution of meal costs has a mean of \)9 and a standard deviation of \(3what are the mean and standard deviation of his tip distribution?

a. \)2.90,\(0.30

b. \)2.90,\(2.30

c. \)9.00,\(3.00

d. \)11.00,\(2.00

e. \)2.00,$0.90

Short Answer

Expert verified

The correct option is (a)$2.90,$0.30

Step by step solution

01

Given information

Mean=$9 and a standard deviation= $3

02

Calculation

μ(Histips)=$2+$1.09=$2.90

σ(Histips)=$3×$0.1=$0.30

Hence, the correct option is (a).

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