A J.D. Power and Associates vehicle quality survey asked new owners a variety of questions about their recently purchased automobile One question asked for the owner's rating of the vehicle using categorical responses of average, outstanding, and exceptional. Anothe question asked for the owner's education level with the categorical responses some high school, high school graduate, some college, and college graduate. Assume the sample data below are for 500 owners who had recently purchased an automobile. Education Quality Rating Some HS HS Grad Some College College Grad Average Outstanding Exceptional 35 30 25 65 50 50 50 95 15 20 25 40 a. Use a 0.05 level of significance and a test of independence to determine if a new owner's vehicle quality rating is independent of th owner's education. Compute the value of the ✗2 test statistic (to 2 decimals). 6.57 Use Table 3 of Appendix B to find the p-value. The p-value is greater than 0.10 What is your conclusion? Cannot conclude that the quality rating is not independent of the education of the owner. b. Use the overall percentage of average, outstanding, and exceptional ratings to comment on how new owners rate the quality of the recently purchased automobiles. Average 29 % Outstanding 46 % Exceptional 25 % New owners appear to be satisfied with the recent purchase of their automobile. 71 % of owners rated their automobile as Outstanding or Exceptional.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.1: Measures Of Center
Problem 27PFA
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A J.D. Power and Associates vehicle quality survey asked new owners a variety of questions about their recently purchased automobile
One question asked for the owner's rating of the vehicle using categorical responses of average, outstanding, and exceptional. Anothe
question asked for the owner's education level with the categorical responses some high school, high school graduate, some college,
and college graduate. Assume the sample data below are for 500 owners who had recently purchased an automobile.
Education
Quality Rating
Average
Outstanding
Exceptional
Some HS
HS Grad
Some College
College Grad
35
30
25
65
50
50
50
95
15
20
25
40
a. Use a 0.05 level of significance and a test of independence to determine if a new owner's vehicle quality rating is independent of th
owner's education.
Compute the value of the test statistic (to 2 decimals).
6.57
Use Table 3 of Appendix B to find the p-value.
The p-value is greater than 0.10
What is your conclusion?
Cannot conclude
that the quality rating is not independent of the education of the owner.
b. Use the overall percentage of average, outstanding, and exceptional ratings to comment on how new owners rate the quality of the
recently purchased automobiles.
Average
29
%
Outstanding
46
%
Exceptional
25
%
New owners appear
to be satisfied with the recent purchase of their automobile.
71
% of owners
rated their automobile as Outstanding or Exceptional.
Transcribed Image Text:A J.D. Power and Associates vehicle quality survey asked new owners a variety of questions about their recently purchased automobile One question asked for the owner's rating of the vehicle using categorical responses of average, outstanding, and exceptional. Anothe question asked for the owner's education level with the categorical responses some high school, high school graduate, some college, and college graduate. Assume the sample data below are for 500 owners who had recently purchased an automobile. Education Quality Rating Average Outstanding Exceptional Some HS HS Grad Some College College Grad 35 30 25 65 50 50 50 95 15 20 25 40 a. Use a 0.05 level of significance and a test of independence to determine if a new owner's vehicle quality rating is independent of th owner's education. Compute the value of the test statistic (to 2 decimals). 6.57 Use Table 3 of Appendix B to find the p-value. The p-value is greater than 0.10 What is your conclusion? Cannot conclude that the quality rating is not independent of the education of the owner. b. Use the overall percentage of average, outstanding, and exceptional ratings to comment on how new owners rate the quality of the recently purchased automobiles. Average 29 % Outstanding 46 % Exceptional 25 % New owners appear to be satisfied with the recent purchase of their automobile. 71 % of owners rated their automobile as Outstanding or Exceptional.
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