White remains the most popular car color in the United | StudySoup

Textbook Solutions for Introduction to Statistics and Data Analysis (with CengageNOW Printed Access Card) (Available Titles CengageNOW)

Chapter 10 Problem 10.91

Question

White remains the most popular car color in the United States, but its popularity appears to be slipping. According to an annual survey by DuPont (Los Angeles Times, February 22, 1994), white was the color of 20% of the vehicles purchased during 1993, a decline of 4% from the previous year. (According to a DuPont spokesperson, white represents innocence, purity, honesty, and cleanliness.) A random sample of 400 cars purchased during this period in a certain metropolitan area resulted in 100 cars that were white. Does the proportion of all cars purchased in this area that are white appear to differ from the national percentage? Test the relevant hypotheses using a .05. Does your conclusion change if a .01 is used?

Solution

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The first step in solving 10 problem number 85 trying to solve the problem we have to refer to the textbook question: White remains the most popular car color in the United States, but its popularity appears to be slipping. According to an annual survey by DuPont (Los Angeles Times, February 22, 1994), white was the color of 20% of the vehicles purchased during 1993, a decline of 4% from the previous year. (According to a DuPont spokesperson, white represents innocence, purity, honesty, and cleanliness.) A random sample of 400 cars purchased during this period in a certain metropolitan area resulted in 100 cars that were white. Does the proportion of all cars purchased in this area that are white appear to differ from the national percentage? Test the relevant hypotheses using a .05. Does your conclusion change if a .01 is used?
From the textbook chapter Hypothesis Testing Using a Single Sample you will find a few key concepts needed to solve this.

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Title Introduction to Statistics and Data Analysis (with CengageNOW Printed Access Card) (Available Titles CengageNOW) 3 
Author Roxy Peck, Chris Olsen, Jay L. Devore
ISBN 9780495118732

White remains the most popular car color in the United

Chapter 10 textbook questions

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