In: Statistics and Probability
Based on sales over a six-month period, the five top selling compact cars are Chevy Cruze, Ford Focus, Hyundai Elantra, Honda Civic, and Toyota Corolla (Motor Trend, November 2, 2011). Base on total sales, the market shares among for these five compact cars were Chevy Cruze 24%, Ford Focus 21% , Hyundai Elantra 20% , Honda Civic 18% , and Toyota Corolla 17% . A sample of compact car sales in Chicago showed the following number of vehicles sold.
Excel File: data12-27.xlsx
Chevy Cruze | 108 |
Ford Focus | 92 |
Hyundai Elantra | 64 |
Honda Civic | 84 |
Toyota Corolla | 52 |
Use a goodness of fit test to determine if the sample data indicate that the market shares for the five compact cars in Chicago are different than the market shares reported by Motor Trend. Using a level of significance
The P value is - _____(between .025 and .05, between .01 and .025)
What is your conclusion?
(Conclude that the markets shares for the five compact cars in Chicago differ from the market shares reported by Motor Trend or Conclude that the markets shares for the five compact cars in Chicago same from the market shares reported by Motor Trend.)
Item 2
What market share differences, if any, exist in Chicago? Round your answers to two decimal places. Enter negative values as negative numbers.
Compact Car | Hypothesized Market Share |
Sample Market Share |
Difference |
Chevy Cruze | .24 | ||
Ford Focus | .21 | ||
Hyundai Elantra | .20 | ||
Honda Civic | .18 | ||
Toyota Corolla | .17 |
Chi square test for Goodness of fit
expected frequncy,E = expected proportions*total
frequency
total frequency= 400
category | observed frequencey, O | expected proportion | expected frequency,E | (O-E)²/E | ||
Chevy Cruze | 108 | 0.240 | 96.00 | 1.500 | ||
Ford Focus | 92 | 0.210 | 84.00 | 0.762 | ||
Hyundai Elantra | 64 | 0.200 | 80.00 | 3.200 | ||
Honda Civic | 84 | 0.180 | 72.00 | 2.000 | ||
Toyota Corolla | 52 | 0.170 | 68.00 | 3.765 |
chi square test statistic,X² = Σ(O-E)²/E =
11.227
Degree of freedom=k-1= 5 -
1 = 4
P value = between .01 and .025
Conclude that the markets shares for the five compact cars in Chicago differ from the market shares reported by Motor Trend
b)
category |
|
sample market share | difference | |||
Chevy Cruze | 0.24 | 0.27 | -0.03 | |||
Ford Focus | 0.21 | 0.23 | -0.02 | |||
Hyundai Elantra | 0.20 | 0.16 | 0.04 | |||
Honda Civic | 0.18 | 0.21 | -0.03 | |||
Toyota Corolla | 0.17 | 0.13 | 0.04 |