Automobile magazines often compare vehicle models and rate t

Automobile magazines often compare vehicle models and rate them in various ways. One question that is often asked is whether the car owner would buy the same model again.

Suppose that a researcher of one magazine collected a random sample of Lexus owners and a random sample of Acura owners and asked whether they plan to buy another Lexus or another Acura the next time they shop for a new car.

As a result, 420 out of 1000 Lexus owners responded that they are going to buy another Lexus. And, 530 out of 1500 Acura owners responded that they are going to buy another Acura.

Based on this information, would the researcher conclude that the two population of car owners differ in their satisfaction levels in their model? Specifically, would the proportion of owners who would stick to the current car differ between the Lexus owner’s population and the Acura owner’s population? Carry out hypothesis testing to answer this question.

Solution