One Sample Hypothesis Testing Process

The U.S. Economy crisis had a devastating effect on the Auto Industry as The

Big Three automakers faced what would have been a catastrophic event in U.S. History.

A chain reaction of similar industries would have further crippled the U.S. Economy as

the downfall of the automakers industry would have eliminated several millions jobs in

various auto related businesses such as, auto dealers, part suppliers, mechanics,

transportation, and banking.

President Barrack Obama led an intensive campaign that helped the recovery of

the auto industry with a $60 billion bailout. Since the recovery of the auto industry, car

manufacturers have begin to increasing the manufacturing of cars and employees are

returning to work. The economy is still experiencing a roller coasters ride with minimum

growth.

Over the last few years there has been a constant drop in the volume of U.S.

auto sales causing the auto industry to take aggressive steps to create a new market for

cars. There were several incentives used by the auto manufacturers and auto

retail dealers attract new buyers. Some of the most effective incentives included a 0%

down and the various other low interest financing plans.

The research that was examined in the data set revealed that the age of the auto

buying consumers is becoming an important factor when looking at auto buying. There

are four age groups that will be examined the mid 20’s, 30’s, 40’s and 50’s years of

age.

Five Step Hypothesis

Step One:

The hypothesis to be examined (H₀) is based on the 4 various age groups

and their buying power. The null hypothesis examines which age group purchases more

higher priced car than the other three groups. It was assumed that the age group of the

50 year old group. The purpose of the Research will examine and test this hypothesis to

prove that auto purchasers in the 50 year old and older age group have the means to

pay more for their automobiles than the three other age groups. The alternative

hypothesis researchers will determine (H₁) the preference of the type of automobiles

desired by each group, whether they prefer domestic or imported automobiles.

Step Two: The choice for buying a car has a lot to do with the financial well being of a person’s life. Mortgage payments, credit card payments, and student loans are just some of the financial obligations that affect so many people from buying the type of car they really want.
Although, these factors may impact the decision making of many prospective car buyers, research shows a trend in the car buying process amongst specific age groups.
According to the article “Down Economy Moves Car Buyers’ Age Up”, Buyer age rose because young consumers were forced to the sidelines by having to make mortgage and credit card payments at the expense of car installments. Mortgage and credit card costs impact younger, lower-income consumers more than older, higher-income ones
(Mateja, 2008).

Step Three is the average purchase price mean $26,983 for the 50 years and older group must be compared to the average purchase price mean $17,384 for the 20 years and older group, the average purchase price mean of the 30 years and older group and the average purchase mean price of the 40 years and older age group auto purchasers.

The values are displayed in the Descriptive Statistics in (Appendix A).

Step Four is based on the statistical research data observed the assumption is

that the 50 years and older group have more purchasing power along with the ability to

purchase the higher price with more ease and stability.

Step Five examines the sample data in presented after the hypothesis test

proving that in comparison the 50 years and older group have more money than the

20’s, 30’s and 40’s. The 50 year old group are more stable with more financial assets

along with the ability to acquire more low interest loan.