Like, Minjin said, 선 means 'choose, select among many options'. so 선호 means 'preference btw them'
I understand I could also say 나는 차 대신에 기차로 가는 것을 더 좋아해요.
and yes, we do say that often. but if it is written on the paper for survey thing, it could be better word to use. It could be more formal and suitable for written English for formal use.
당신은 차, 기차, 비행기 그리고 배 중에 어느 것을 선호하십니까?
and I have a question for you. I've read your all questions so far. Does your Jinok is living so far away from you? cuz in korea, their is two type of words for train. If it's the train to go far away from you, and have so many passenger cars(or coach), in this case we say 기차. In this case, the train goes btw cities and interstates. But if it is a tram, we can say '전차', and if it goes around just one city or runs under the ground, we use '전철' '지하철'.
I was just curious, cuz in AU, you guys have nice and pretty Trams in several city, which I loved it. :)
hope it could be a little help for you. :)