One Sided

Select one (1) project from your working or educational environment that you would use the hypothesis test technique. Next, propose the hypothesis structure (e.g., the null hypothesis, data collection process, confidence interval, test statistics, reject or not reject the decision, etc.) for the business process of the selected project. Provide a rationale for your response.

When we look around us, we may not recognize that statistics is all around. Before I began to take this course “Statistics for Managers” I was not aware of how statistics actually worked. The first idea that came to my mind about statistics was probability. Not knowing statistics and probability are related because they both determine a possible outcome. Throughout this course I have learned what statistics is and how it works. In this paper, I will describe descriptive and inferential statistics, hypothesis developing and testing, the selection of statistical tests, and how to evaluate statistical results in analyzing data.

Moreover, the study develops hypothesis using the 7-Step hypothesis testing. The 7-step hypothesis testing is as follow:

Objective: To find out the risk of customers using bank accounts and provide methods for mitigation of the highest priority residual risk.

Bentley Foods Inc. is a manufacturer of a new frozen pizza and is looking to see if their process is worth its cost. “A process can be defined as a structured, predefined and measured set of activities designed to produce a specific output for a particular customer or market. A well-oriented process is designed to add value for the customer in question and should not include non-value-added activities which would incur costs for the enterprise” (Ayhan, 2013). 1,000 customers were sampled and out of those 1,000 there were 172 said that they prefer the new pizza over existing. We must find out the null hypothesis, alternative hypothesis, z-statistic, and significance in order to figure out a solution to this problem.

With this, the paper is going to look into the use of credit cards. The credit card usage has grown fast with many people opting to get one instead the use of cash system. This system which has seen the banks issuing more credit and debit cards and also influencing the growth of banks because ATM machines have to be installed to also help customers withdraw their cash (Mark, 2102). The paper will be analysing why people have chosen to use credit cards, the reasons why they should revert to using cash systems instead of credit cards.

Hypothesis testing plays an important role in these testing approaches because it forces organizations to think about the current state of their business and to make claims about their customers preferences and desires. The organization then is forced to initiate different projects to investigate and determine whether these claims are true on not. As Avinash explained, starting with a hypothesis allow organization to accomplish two important things; first it allow for the contribution of clear input into test script creation and second, it helps with the establishment of clear success measurement (Avinash, Kaushik, Web

Moreover, the study develops hypothesis using the 7-Step hypothesis testing. The 7-step hypothesis testing is as follow:

The old management of the Saudi Investment Bank had enacted poor decisions due to their approach in making executive decisions. The old management used their professional experience and assumptions to enact big decisions. This approach has cost the bank millions of dollars, as an internal consultant department announced (4). For example, the bank was well known in the time of its establishment as a corporate bank. The bank had not accepted to open individual accounts. At that time, the bank was the first corporate bank in Saudi Arabia. However, the bank did not act seriously to capture a new segment of customers. As a result, the bank has failed to compete with other banks. By the time, the higher management of the bank has changed to a new management that believed in statistics and analytics to conquer the market. The bank started to focus on capturing a new segment of customers, thus it finally decided to open new branches and proceeded to expand its retail banking sector. Due to limited resources, the bank had to decide in which area the bank should open branches to gain a huge number of customers to convince the board of directors about the importance of the retail

Recent years have also seen an increase in the use of ATM machines. When Mr. Selig took over the bank, the mean number of transactions per month per customer was 8; now he believes it has increased to more than 10. In fact, the advertising agency that prepares TV commercial for Century would like to use this on the new commercial being designed. Is there sufficient evidence to conclude that the mean number of transactions per customer is more than 10 per month? Could the advertising agency say the mean is more than 9 per month?

Lastly, all of these shortcomings to the conventional system prolong the time it takes for a customer to deposit a check and receive the funds. Ultimately, any process improvements must create a positive customer experience and reduce added exposure to both the customer and the banks.

To conduct hypothesis testing to ensure which product is best fir for the organization to increase its sales

During the past decade, we have undergone enormous changes in the way that we conduct business. ATM check cards, credit cards, and preferred customer cards are the most common buying tools today. Check, or debit, cards are ATM cards that function just like cash. Customers can now make payments with their check cards

I was expecting to be correct in the assumption in the case of debit card holders having to make less visits to ATM machines than non-debit card holders, but I was also prepared to be proven wrong in the same scenario should the study and information we discovered shed light on the other side of the argument in this case.

This use case depicts how a Bank Customer uses an ATM to withdraw or Deposit cash into their bank account.