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.
a. Set up a contingency table for these data.
b. Test the hypothesis that buyer status (repeat versus first- time) and styling preference are independent at the .05 level of significance. What do you conclude?
c. Carry out a graphical analysis to investigate the nature of any relationship between buyer status and styling preference. Describe the relationship.