Question

A popular U.S. automobile manufacturer has​ 10,000 dealerships located throughout the country. The automobile manufacturer has multiple brands within its​portfolio: a value brand that caters to younger​ clientele, a moderate brand that caters to middle class customers and​ finally, a premium brand which is marketed to wealthy clientele. The​ company's leadership, located at corporate​ headquarters, is very interested in the relationship between the median salary of potential customers and the​ company's revenue.​ Specifically, the company is concerned that if potential​ customers' salaries continue to not increase in the​ future, the​company's revenue will remain​ stagnant, which will in turn steer away potential investors and shareholders. The​ company's research department recently collected data for analysis in order to support​ leadership's upcoming discussion with shareholders and investors about the​ company's future revenue forecast. Sales figures from a random sample of 1000 dealerships were collected. The research division also conducted statistical​ analysis, using data provided by the Bureau of Labor and​ Statistics, to calculate the median salary of people living in the vicinity of these​ 1,000 dealerships. The Dealership​ Number, State, Median​ Salary, Annual​Sales, Number of Vehicles​ Sold, Square Footage and Quality Award Winner data were collected for these 1000 dealerships.

We have an interest in finding out if the different dealerships sell different kinds of cars. Although our data set does not contain a lot of​ detail, one way to find such differences is by looking at the combination of Annual Sales and Number of Vehicles Sold for each dealership.

Find the median values of Annual Sales and Number of Vehicles Sold.

The median value for Annual Sales is ​$__ ,and the median value for Number of Vehicles Sold is ​$__.

Create two new indicator variables that indicate if a dealership has above median Annual Sales and above median Number of Vehicles Sold​ (so called​median-splits). In order to obtain the indicator variables with​ StatCrunch, use the following menu and option​ selections, where the expressions have the format​"Annual

​Sales">​xxx,

xxx being the calculated median value​ (same for Number of Vehicles​ Sold).

Data​ > Compute​ > Expression​ > Build Expression​ > Compute

Now create the contingency table of these two new indicator variables.

What values do you find on the diagonal of this contingency table​ (upper-left and​ lower-right cells)?

The value in the​ upper-left cell is__, and the value in the​ lower-right cell is __ .

What values do you find on the​ anti-diagonal of this contingency table​ (upper-right and​ lower-left cells)?

The value in the​ upper-right cell is __ , and the value in the​ lower-left cell is __ .

Based on this contingency​ table, what is the conditional probability of a dealership with above median Number of Vehicles Sold having above median Annual​Sales?

The conditional probability is__ .

Based on this contingency​ table, what is the conditional probability of a dealership with above median Number of Vehicles Sold having below median Annual​Sales?

The conditional probability is__.

How would you describe the events dealership having above median Number of Vehicles Sold and dealership having below median Annual​ Sales?

Independent

or

Disjoint

Make a scatterplot of Annual Sales against Number of Vehicles Sold. In order to obtain the scatterplot with​ StatCrunch, use the following menu and option selections.

Graph​ > Scatter Plot​ > Select X​ & Y variable​ > Compute

Describe the relationship between Annual Sales against Number of Vehicles Sold.

Answer 1

Please ask your query if any in comment.

PLEASE RATE THUMBS UP ??

THANKYOU

Please don't dislike the answer, feel free to ask your query if any in comment.