A coffee shop claims that its fresh-brewed drinks have a meancaffeine content of 80 milligrams per 5 ounces. A city healthagency believes that the coffee shop’s fresh- brewed drinks havehigher caffeine content. To test this claim the health agency takesa random sample of 100 five-ounce servings and found the averagemean caffeine content of the sample was 87 milligrams with standarddeviation of 25 milligrams. Does this provide enough evidence atthe 1% significance level to claim that the coffee shop’s fresh-brewed drinks have higher caffeine content?
For the test of significance questions, clearly indicate each ofthe formal steps in the test of significance.
Step 1: State the null and alternative hypothesis.
Step 2: Calculate the test statistic.
Step 3: Find the p-value.
Step 4: State your conclusion. (Do not just say “Reject H0” or“Do not reject H0”, state the conclusion in the context of theproblem.)
