ANSWER
[tex]11.96[/tex]EXPLANATION
Parameters given:
x = 12 oz
σ = 0.02 oz
We want to find the mean amount of coffee to be dispensed if you can allow the cup to overfill 3% (0.03) of the time.
To do this, we have to first find the z value that is equal to the 97th percentile (0.97) due to the reason that everything above 12 oz will occur only 3% of the time.
To find the z value, we check the standard normal table.
The z value corresponding to 0.97 is 1.88.
Now, we can solve for the mean using the formula for z-score:
[tex]z=\frac{x-\mu}{\sigma}[/tex]where μ = mean
Therefore, the mean is:
[tex]\begin{gathered} 1.88=\frac{12-\mu}{0.02} \\ \Rightarrow1.88\cdot0.02=12-\mu \\ \Rightarrow\mu=12-0.0376 \\ \mu=11.96 \end{gathered}[/tex]That is the answer.