1245 words - 5 pages

IntroductionThe data set of Century National Bank shows account balance in dollars, number of ATM transactions in the month, number of other bank services used, customers who use a debit card and those who do not, the accounts which receives interest, and city of origin. Century National Bank has a vast amount of account information to maintain. This one-sample hypothesis paper will formulate both a numerical and verbal hypothesis and show the five step hypothesis of the data that is acquired. The experiment will also describe the results and findings of the hypothesis testing to answer the question above. This paper will analyze raw data tables and the results of the Z-test using both graphical and tabular methods.Numerical and Verbal HypothesisAccording to Caroline Fouts (2008), "Debit cards have become a very popular way to pay for everything from fast food to rental cars." The Federal Reserve reports that debit card transactions have been growing more than 20% annually and have surpassed credit card transactions" (¶ 4). The appeal is understandable as debit cards are quick and convenient to use (Fouts, 2008). The Century National Bank Data Set will help us determine if the average balance of account holders is directly related to ownership of a debit card. The bank data will either allow us to accept or reject our hypothesis that the average balance of account holders with debit cards is lower than those without. The research for the hypothesis will be completed by calculating that average balances of customers with and comparing the average balances of those without debit cards.The null hypothesis for the bank data set would be : the average balance of account holders with debit cards if higher than those without. If the data set does not prove the alternate, then we will have failed to reject the null hypothesis, however, if the team is able to prove the alternate we will reject the null, which stated accounts holders who use debit card carry higher balances to those who do not.Five-Step Hypothesis TestTesting a hypothesis requires one to follow five steps. These steps include: stating the null hypothesis; selecting a level of significance; identifying the test statistic; stating the decision rule; and taking a sample and arriving at a decision. One must properly identify the appropriate data and levels of measure for each test in order to reach an accurate conclusion of whether or not to reject or accept the null hypothesis. In this instance the null hypothesis ( ), concludes that the average balance in accounts with debit cards are higher than those without debit cards. The alternative hypothesis ( ), states that the average balance of accounts without debit cards is higher than those with debit cards.The chosen level of significance for this test is 0.01, or 1%. This level of significance is known as , or alpha, stating that Learning Team A believes that we are 99% sure of our test results (Doan & Seward, 2007). The level of...

Get inspired and start your paper now!