In the book Business Research Methods (5th ed.), Donald R. Cooper and C. William

Question

In the book Business Research Methods (5th ed.), Donald R. Cooper and C. William Emory discuss a market researcher for an automaker who is studying consumer preferences for styling features of larger sedans. Buyers, who were classified as “first-time” buyers or “repeat” buyers, were asked to express their preference for one of two types of styling—European styling or Japanese styling. Of 40 first-time buyers, 11 preferred European styling and 29 preferred Japanese styling. Of 60 repeat buyers, 43 preferred European styling, and 17 preferred Japanese styling.

(a) Set up a contingency table for these data.

(b) Test the hypothesis that buyer status (repeat versus first-time) and styling preference are independent at the .05 level of significance. What do you conclude? (Round your answer to 3 decimal places.)

Style Buyers European Japanese Total First-time Repeat Total __ans6__

Explanation / Answer

a)

from baove chi square stat X2 =18.847

and for chis stat 18.847 and 0.05 level p value =0.0000

as p value is less then 0.05 levle we reject null hypothesis; and conclide that buyer status and styling preference are dependnent.

Observed O European Japanese Total first time 11 29 40 repeat 43 17 60 Total 54 46 100 b) Expected E=rowtotal*column total/grand total European Japanese Total first time 21.600 18.400 40 repeat 32.400 27.600 60 Total 54 46 100 chi square =(O-E)^2/E European Japanese Total first time 5.202 6.107 11.308 repeat 3.468 4.071 7.539 Total 8.670 10.178 18.847

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