Question 806460: A consumer advocacy group wants to determine whether there is a (statistically significant) difference between the proportions of the two leading automobile models that need major repairs within 2 years of purchase. A major repair is defined as “more than $500.”
A sample of 500 owners of the Model A is contacted, and 65 owners indicated that their vehicles needed major repairs within 2 years. A sample of 600 owners of Model B is contacted, and 90 owners indicated that their vehicles needed major repairs within 2 years.
Test the null hypothesis that no difference exists between the proportions in populations A and B needing major repairs against the alternative hypothesis that a difference does exist. Use α = 0.10.
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A consumer advocacy group wants to determine whether there is a (statistically significant) difference between the proportions of the two leading automobile models that need major repairs within 2 years of purchase. A major repair is defined as “more than $500.”
A sample of 500 owners of the Model A is contacted, and 80 owners indicated that their vehicles needed major repairs within 2 years. A sample of 600 owners of Model B is contacted, and 108 owners indicated that their vehicles needed major repairs within 2 years.
Test the null hypothesis that no difference exists between the proportions in populations A and B needing major repairs against the alternative hypothesis that a difference does exist. Use α = 0.10.
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