There was a lawsuit against Starbucks claiming that their lattes are being under filled. We know that a grande size cup should be 16 oz. The Today Show decided to do a test to see if they actually are being under filled. They went out and got 6 lattes and found that the average amount of liquid in each was 13.22 oz, with a sample standard deviation of 2.05. We are interested in determining if there is evidence that the lattes are being under filled. Use alpha= 0.01. Find the 99% confidence interval for the number of oz the lattes are being filled with.
The test statistic is:
The p-value is:
What conclusion would be made here?
Null and alternative hypothesis:
Test statistic:
df = 6-1= 5
p-value = T.DIST(-3.322, 5, 1) = 0.0105
Conclusion:
As p-value = 0.0105 > 0.01, we fail to reject the null hypothesis.
There is not enough evidence to claim that the lattes are being under filled, at the 0.01 significance level.
Confidence interval:
At = 0.01, critical value, = T.INV.2T(0.01, 5) = 4.032
99% confidence interval:
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