Question

Brand loyalty in the automotive industry can be measured by the percentage of brand owners who purchase again. Suppose Cars.com would like to investigate if there is a difference in brand loyalty between Chevrolet and Buick owners. A random sample of 160 Chevrolet owners found that 68 had previously owned a Chevrolet. A random sample of 150 Buick owners found that 76 had previously owned a Buick.
a. Using α = 0.05, perform this hypothesis test for Cars.com.
b. Construct a 95% confidence interval to estimate the difference in the proportion of owners who purchased the same brand of car for these two populations. Interpret your result.
c. Determine the p value and interpret the results.


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  • CreatedJuly 17, 2015
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