Step 1 :The problem is asking for the mean amount of coffee to be dispensed such that the cup overfills only 1% of the time. This is a problem of normal distribution. We know that the standard deviation is 0.07 ounces. We also know that the cup's capacity is 8 ounces. We need to find the mean such that 99% of the time, the amount of coffee dispensed is less than or equal to 8 ounces.
Step 2 :We can use the Z-score formula to solve this problem. The Z-score is a measure of how many standard deviations an element is from the mean. In a normal distribution, about 99% of the data will fall within ±2.33 standard deviations of the mean.
Step 3 :So, we can set up the following equation to find the mean (μ): \(8 = μ + 2.33(0.07)\)
Step 4 :We can solve this equation to find the mean. The mean amount of coffee to be dispensed should be set to \(\boxed{7.84}\) ounces.