Question

Starbucks Customer Satisfaction

Starbucks is interested in assessing customer satisfaction in the Nashville City of TN, United States.

To conduct the study, Starbucks asked 225 customers for their feedback.

Feedback Question: Compared to other coffee houses in the city, Starbucks service was rated on Likert Scale 1-5, where

Much better than average: 5

Better than average: 4

Average: 3

Worse than average: 2

Much worse than average: 1

Based on the sample of 225 customers mean rating was determined: 3.25

Company has used its previously conducted studies to assume the standard deviation, which is 1.5.

Answer 1

Sol:

Ho:Mu>=3

if rating 3 and above customers a re satisfied

Ha:Mu<3

left tail z test for mean

alpha=0.05

test statistic

z=xbar-mu/sigma/sqrt(n)

=(3.25-3)/(1.5/sqrt(225))

z= 2.5

p value in excel

=NORM.S.DIST(2.5,TRUE)

=0.993790335

P value=0.9938

p>0.05

Fail to reject Ho

Accept Ho

Conclusion:

There is suffcient statistical evidence at 5% level significance to conclude that  customers n the Nashville City of TN, United States are satsified with Starbucks