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, 8 preferred European styling and 32 preferred Japanese styling. Of 60 repeat buyers, 40 preferred European styling, and 20 preferred Japanese styling.

1) Create a cross-tabulation for the data (5 points)

2) Test the hypothesis that buyer status (repeat versus first-time) and styling preference are independent at the 0.05 level of significance. What is your conclusion? Show the procedure. (5 points)

Answer 1