The Sav NerG company is interested in increasing sales of its energy-efficient s

Question

The Sav NerG company is interested in increasing sales of its energy-efficient small car, the LowE so that the ride is smoother or the interior is more like a luxury car. Adults (25-40 years) who are considering buying a new car drive the original LowE and then the cars that have been modified (first for smoother ride and then with better interior). Drivers rate their probability of buying each version of the car immediately after buying it. Assume a two-tailed test with level of significance at .05.

a) What is the null hypothesis?

b) What is the alternative hypothesis?

c) What is the independent variable and the levels of the IV?

d) What is the dependent variable?

e) What is the scale of measurement for the DV? (nominal, interval, ratio, etc.)

Original LowE .55 .60 .70 .65 .50 .45 .70 .65 .55 .50 Smoother ride .60 .70 .70 .65 .55 .70 .70 .60 .65 .65 Improved interior .65 .65 .75 .65 .60 .70 .75 .65 .60 .70

Explanation / Answer

Null hypothesis- There would be no significant difference between the driver's rating on their probability of buying each version of car.

Alternative hypothesis-There would be a significant difference between the driver's rating on their probability of buying each version of car.

Independent variable- version of car

Level of IV- orignal; smoother; improved interior

Dependent variable- driver's probability to buy

Scale of measurement for the DV- ratio;

In addition to possessing the qualities of nominal, ordinal, and interval scales, a ratio scale has an absolute zero (a point where none of the quality being measured exists). Using a ratio scale permits comparisons such as being twice as high, or one-half as much.

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