Each year a market research company surveys new car owners 90 days after they pu

Question

Each year a market research company surveys new car owners 90 days after they purchase their cars. This data is used to rate auto brands (such as Toyota and Ford) on quality and customer satisfaction. Suppose the following were the quality rating and satisfaction scores for all 33 brands sold in the United States.

CALCULATE R VALUE:

Brand Quality Rating Satisfaction Rating Acura 86 822 Audi 111 832 BMW 113 845 Buick 114 797 Cadillac 111 818 Chevrolet 111 789 Chrysler 122 748 Dodge 130 751 Ford 93 794 GMC 126 792 Honda 95 766 Hyundai 102 760 Infiniti 107 805 Jaguar 130 854 Jeep 129 727 Kia 126 761 Land Rover 170 841 Lexus 88 822 Lincoln 106 820 Mazda 114 774 Mercedes-Benz 87 847 Mercury 113 769 Mini Cooper 133 815 Mitsubishi 146 767 Nissan 111 763 Porsche 83 872 Ram 110 780 Scion 114 764 Subaru 121 755 Suzuki 122 750 Toyota 117 750 Volkswagen 135 797 Volvo 109 795

Explanation / Answer

Assumption Satisfaction rating is dependent on the quality rating. Dependent variable Customer rating Independent variable Quality rating Using excel for calculating R Go to Data Menu Data Analysis tool Regression SUMMARY OUTPUT Regression Statistics Multiple R 0.225493 R Square 0.050847 Adjusted R Square 0.020229 Standard Error 36.18097 Observations 33 ANOVA df SS MS F Significance F Regression 1 2173.961 2173.961 1.6607 0.207044 Residual 31 40580.95 1309.063 Total 32 42754.91 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 844.5086 41.09048 20.55242 1.28E-19 760.704 928.3132 760.704 928.3132 Quality Rating -0.45622 0.354019 -1.28868 0.207044 -1.17824 0.265809 -1.17824 0.265809 R value comes out to be 0.225493

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