A server in a restaurant rates his chances at getting a tip

A server in a restaurant rates his chances at getting a tip from a customer as shown in the table.
Tip        Chance
$0           20%
$1           30%
$2           40%
$5           10%

a. Set up a simulation model that you could use to approximate the chance that the sum of the tips that the server receives from 8 customers (each tipping independently) is $15 or more. Your model should identify of each of the following: Simulation Component: Possible Outcomes: Simulation Assignment: Simulation Trial: Response Variable:
b. Set your calculators random seed to 0 (0 STO MATH PRB 1:rand ENTER) and list the results for 20 trials.
c. What does the simulation in Part b) estimate as the chance that the server receives $15 or more from 8 customers?

Solution

a. From a random number table, we choose a single digit and include it in our sample if it is 0,1,2 or 5 otherwise goto the next number. this is carried on till the desired number of points is obtained.

b. Result for 20 trials are

c. the simulation in Part b) estimate as the chance that the server receives $15 or more from 8 customers is 14/20 = 0.7