Question

Toyota Camry, Honda Accord and Ford F-150 are the top 3 best-selling passenger cars in the U.S for the last 5 years. Data for 2018 is shown in the table below. Your interest is to to determine whether the shares in the passenger car market have changed in 2018. Use an alpha of 0.05 on your test. Market Share Observed in 2018 Toyota Camry 0.40 90 Honda Accord 0.35 70 Ford F-150 0.25 40 total 100% 200 What is the expected value for each category What is the value of the test statistic you calculated for this problem? What is the value of degrees of freedom? What is the critical value for the given alpha What is your decision after performing the test What is your conclusion after performing the test? Be specific and relate to the problem.

Answer 1

Solution: The shares in the passenger car market are same in 2018.

The shares in the passenger car market have changed in 2018.

What is the expected value for each category

Answer: The expected values are given below:

What is the value of the test statistic you calculated for this problem?

Answer: The test statistic is given below:

Where O is the observed frequencies

E is the expected frequencies

Therefore we have test statistic:

What is the value of degrees of freedom?

Answer:

What is the critical value for the given alpha

Answer:

What is your decision after performing the test What is your conclusion after performing the test?

Answer: Since is less than the , we therefore fail to reject null hypothesis and conclude that the shares in the passenger car market have not changed in 2018.