Question

In: Statistics and Probability

Organizations such as J.D. Power and Associates use the proportion of owners likely to repurchase a...

Organizations such as J.D. Power and Associates use the proportion of owners likely to repurchase a particular automobile as an indication of customer loyalty for the automobile. An automobile with a greater proportion of owners likely to repurchase is concluded to have greater customer loyalty.

A study was conducted to compare the customer loyalty for three automobiles: Chevrolet Impala, Ford Fusion, and Honda Accord. The study contained 500 respondents and the data is summarized in the Microsoft Excel Online file below. Use the spreadsheet to perform the required calculations and hypothesis test.

  1. Enter the values from the expected frequency table (to 2 decimals if necessary).

    Chevrolet Impala Ford Fusion Honda Accord Total
    Yes
    No
    Total

  2. What is the value of the test statistic (to 2 decimals)?

    (___)

  3. What is the ?-value (to 4 decimals)?

    (___)

    Observed

  4. Chevrolet Ford Honda Total
    Yes 69 120 123
    No 56 80 52
    Total

Solutions

Expert Solution

Null and Alternative Hypotheses

The following null and alternative hypotheses need to be tested:

H0​: The two variables are independent

Ha​: The two variables are dependent

This corresponds to a Chi-Square test of independence.

orchestra answered 1 year ago
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