Question: Consider the following information: According to management at Café Stars, a local coffee shop chain, the average amount of money a single patron spends on him or herself when eating in the shops (i.e., dine-in, not take-out) is $5. Carissa, a statistics intern in the chain’s corporate offices, collected a sample of size 16 from local store receipts to test the claim, because she suspected that it isn’t an accurate reflection of reality. For her sample, she calculated a sample mean of $4.50, with a sample standard deviation of $1.60. Which claim is more reasonable, the management’s claim or Carissa’s counterclaim, at the 2% level of significance?

Determine the test statistic (i.e., z or t).

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