Chapter 12.2, Problem 14E

Vehicle Quality Ratings. A J. D. Power and Associates vehicle quality survey asked new owners a variety of questions about their recently purchased automobile. One question asked for the owner’s rating of the vehicle using categorical responses of average, outstanding, and exceptional. Another question asked for the owner’s education level with the categorical responses some high school, high school graduate, some college, and college graduate. Assume the sample data below are for 500 owners who had recently purchased an automobile.

1. a. Use a .05 level of significance and a test of independence to determine if a new owner’s vehicle quality rating is independent of the owner’s education. What is the p-value and what is your conclusion?
2. b. Use the overall percentage of average, outstanding, and exceptional ratings to comment upon how new owners rate the quality of their recently purchased automobiles.