Question

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

a. $\backslash )2.90,\backslash (0.30$

b. $\backslash )2.90,\backslash (2.30$

c. $\backslash )9.00,\backslash (3.00$

d. $\backslash )11.00,\backslash (2.00$

e. $\backslash )2.00,\$0.90$

Short answer

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

Step-by-step solution

Given information

Mean=$\$9$ and a standard deviation= $\$3$

Calculation

$\mu (Histips)=\$2+\$1.09=\$2.90$

$\sigma (Histips)=\$3\times \$0.1=\$0.30$

Hence, the correct option is (a).