Consumer Reports measures owner satisfaction of various automobiles by asking th

Question

Consumer Reports measures owner satisfaction of various automobiles by asking the
survey question, “Considering factors such as price, performance, reliability, comfort
and enjoyment, would you purchase this automobile if you had it to do all over again?”
(Consumer Reports website, January 2009). Sample data for 300 owners of four popular
midsize sedans are as follows.

14. Consumer Reports measures owner satisfaction of various automobiles by asking the survey question, "Considering factors such as price, performance, reliability, comfort and enjoyment, would you purchase this automobile if you had it to do all over again?" (Consumer Reports website, January 2009). Sample data for 300 owners of four popular midsize sedans are as follows Automobile Purchase Chevrolet Impala 49 37 Ford Taurus Honda Accord 60 Tovata Camry 46 19 Total 199 101 gain es Conduct a test of independence to determine if the owner's intent to purchase again is independent of the automobile. Use a.05 level of significance. What is your conclusion? Consumer Reports provides an owner satisfaction score for each automobile by re- porting the percentage of owners who would purchase the same automobile if they could do it all over again. What are the Consumer Reports owner satisfaction scores for the Chevrolet Impala, Ford Taurus, Honda Accord, and Toyota Camry? Rank the four automobiles in terms of owner satisfaction Twenty-three different automobiles were reviewed in the Consumer Reports midsize sedan class. The overall owner satisfaction score for all automobiles in this class was 69. How do the United States manufactured automobiles (Impala and Taurus) com- pare to the Japanese manufactured automobiles (Accord and Camry) in terms of owner satisfaction? What is the implication of these findings on the future market share for these automobiles? a. b. c.

Explanation / Answer

a)

TS = 8.465

critical value = 7.82

since TS > critical value

we reject the null hypothesis

b)

% yes

H > T >F >C

c1 c2 c3 c4 sum r1 49 44 60 46 199 r2 37 27 18 19 101 sum 86 71 78 65 300 Eij 1 2 3 4 expected 1 57.04667 47.09667 51.74 43.11667 2 28.95333 23.90333 26.26 21.88333 0i 49 44 60 46 37 27 18 19 Ei 57.04667 47.09667 51.74 43.11667 28.95333 23.90333 26.26 21.88333 sum (Oi-Ei)^2/Ei 1.135015 0.20361 1.318663 0.192817 2.236317 0.401172 2.598157 0.379906 8.465657 p-value 0.037307 critical value 7.82

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