Question

The mean price of a cup of coffee in Portland, OR is $3.12. The owner of a new coffee house believes that the mean price of coffee is different in their neighborhood. A sample of 10 coffee prices from other local coffee shops are shown below. Price 2.02 3.68 4.23 4.69 3.85 2.26 1.83 4.02 3.58 3.24 Test the claim that mean price of a cup of coffee is not equal to $3.12 ysing a 10% level of significance. Assume that the coffee prices are normally distributed. Give answers to at least 2 decimal places. a) Fill in the hypotheses below: Ho: Select an answer H Select an answer ? OS b) 3. D TH to Select an answer yould be: Select an answer that the population mean price of a cup of coffee is not equal to TH $3

Answer 1

Given u = $3.12 n = 10 d= 0.10 Claim; mean price of coffee is different in their neighborhood pie mean price of cup coffee is not equal to $3.12 a Hypothesis Hoiu = $3.12 Hill & $3.12 V B p-value = 0.4973 Test coiteria is, if p-value less than fignificance level a then Reject Ho otherwise accept Ho Here P-value >d, * The correct decinion is to fail to reject the null hypothesis The correct summary would be there is insufficient evidence to support the claim that the population mewn price of a cup of coffee is not requal to $3.12