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American Vs. Foreign Made Cars

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by

Curtis Washburn

on 8 June 2011

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Transcript of American Vs. Foreign Made Cars

American Vs. Foreign Made Cars List of American cars Buick
Cadillac
Chevrolet
Chrysler
Dodge
Ford
GMC
Hummer
Jeep
Lincoln
Mercury List of foreign cars Acura
Audi
BMW
Honda
Hyundai
Kia
Lexus
Mazda
Mercedes Benz
Mitsubishi
Nissan
Subaru
Toyota
Volkswagen
Volvo Data: Frequencies of Car Brand American Foreign Buick - 8
Cadillac - 1
Chevrolet - 29
Chrysler - 6
Dodge - 16
Ford - 24
GMC - 7
Hummer - 2
Jeep - 3
Lincoln - 2
Mercury - 5 Acura - 4
Audi - 4
BMW - 3
Honda - 24
Hyundai - 5
Kia - 3
Lexus - 4
Mazda - 2
Mercedes Benz - 6
Mitsubishi - 1
Nissan - 8
Subaru - 5
Toyota - 27
Volkswagen - 6
Volvo - 2 Totals American Foreign Graph Tests 2-Proportion Z-Test 103 104 P1>P2
z=-.0982946374
p=.5391508918
p1=.4975845411
p2=.5024154589
p-hat=.5 Explanation In this hypothesis test I will test whether Americans drive more American made cars or foreign made cars. After collecting data, it will be used to perform a 2-sample Z-test, which compares the means of the data (American Vs. Foreign).

Ho: American Made > Foreign Made
Ha: American Made < Foreign Made
Significance level - 5%

The p-value is the probability of obtaining the result of seeing an American car.

If the p-value is below the 5% significance level then I will reject the null and favor the alternative hypothesis. Results Given that the p-value is at .5391508918, it is far greater than .05 significance. This means that there is a 54% chance that we see American cars more frequently than foreign. Z-score = -.0983
P-value = .5392 Test for Independence Each car is randomly sampled by picking every third car that drives by
I sampled 207 cars which is far less than 10% of the total population
The trials themselves are independent because each car is different than the previous
Since we do not know the true proportion of american cars to foreign cars we must proceed with caution under the assumption that the sample size is large enough Conclusion Since the p-value was greater than the significance level, I will fail to reject the null hypothesis of American cars > Foreign cars because there is not enough evidence that shows that American or Foreign cars occur more frequently than the other.
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