Question

1. Starbucks is considering opening a small stand on the campus but wants to be sure there are enough coffee drinkers here to make it worth their while. They are willing to open a stand here only if the proportion of all students who drink coffee exceeds the national proportion. A Gallup poll in 2015 found that 64% of all Americans drink coffee. Test, using a significance level of alpha = 0.01 whether the proportion of students who drink coffee is higher than the national proportion.
   1. State the claim and the null and alternate hypotheses. Is the test left-, right-, or two-tailed?

2. Find the sample proportion of students who answered Yes in the Coffee variable.

3. Find the p-value of getting the sample data by chance. Show all work for credit (calculator inputs acceptable).

4. Decision: Reject H₀ or fail to reject H₀?

5. Conclude the result of the test in the context of the situation and in a statement that is understandable to a non-statistician.

Coffee

No

Yes

Yes

Yes

No

No

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

No

No

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Answer 1

Out of 40 people, 30 says yes.

(5)

There is no evidence to conclude that the proportion of all students who drink coffee exceeds the national proportion.