One Sided

1202 Words May 18th, 2009 5 Pages
One Sample Hypothesis Testing Paper
Century National Bank

Matt Steelhead

Submitted to

Yuri Sanchez, Ph.D

November 3, 2008

Introduction

A learning team from the University of Phoenix researched a problem that was presented from Century National Bank. Century National Bank conducted a study in regards to the use of its automatic teller machines (ATMs). Of particular interest is whether accountholders with balances less $1000, those with balances between $1000 and $2000, and those with balances over $2000 are most likely to execute a bank transaction using the machines.

To investigate further, samples of customers in each of the categories were selected. The number of ATM transactions last month was determined for each of the
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There are a variety of tests that can be used including Z statistic, a t statistic, or some other distribution. Because the sample size of the team problem is sufficiently large (60 account holders), the team assumed normality and used a T-test to conduct their test.

Step four of the hypothesis testing is to state the decision rule. This is when the parameters for rejecting or accepting the null hypothesizes are established. According to authors Lind, Marchal, & Wathen, (2005)

Step five of the hypothesis testing is to arrive at a decision. Using the data given from the Century National Bank the team calculated the value of Statistical Measures. Statistical measurements are the key ingredients to any type of research. When our team was assigned the task of analyzing the use of Century National Bank’s automatic teller machines (ATMs) by their accountholders we turned to statistical analysis to aid us in our process. The sample data collected was taken over a month period of time and it analyzed the number of transactions made by account holders at the ATM machines and what their balance were. After compiling the data the team performed several statistical tests to analyze the data and test the hypothesis. The statistical measurements used to analyze Century National