Team+B+RES342+Week+4+Nonparametric+Statistical+Analysis+of+Account+Balances+vs.+Cities+FINAL

Team+B+RES342+Week+4+Nonparametric+Statistical+Analysis+of+Account+Balances+vs.+Cities+FINAL

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Unformatted text preview: Running head: A NONPARAMETRIC STATISTICAL ANALYSIS OF ACCOUNT 1 A Nonparametric Statistical Analysis of Account Balances versus Cities Helen Anguay, Joshua Pittendrigh, Jana Thorson, and Scott Ward University of Phoenix Research and Evaluation II RES342 Facilitator Robert Schaller March 06, 2011 A Nonparametric Statistical Analysis of Account Balances vs. Cities In evaluating Century National Bank data in recent weeks Research Team B is trying to determine the statistical significance of Century National Bank customers’ bank account balances and interest earned on the accounts as well as bank account balance and locale (city) (Lind, Marchal, & Wathen, 2008). In Week 2, the team performed a parametric test to determine if the average account balances were greater for those that receive interest than those that did not. In Week 3, the team took the statistical analysis one step further, doing a two-sample parametric test attempting to determine if customers’ account balances were greater based on interest and the city in which they live. The results of the first parametric test, a test of means, evaluated At Century National Bank data of 60 bank customers. The average (mean) account balance is $1,499.87 with a standard deviation of $569.90. Of those 60 customers 0.2666%, or 27%, earn interest on their accounts. The standard deviation is 0.45%. The null hypothesis was that H : µ > µ (Average balance of interest bearing account is greater than a non-interest bearing account. The alternative hypothesis was H 1 : µ ≤ µ Average balance of non-interest bearing account is greater than an interest bearing account (Anguay, Pittendrigh, Thorson, Ward, 2011). Using the z statistic of a left-sided test to evaluate the mean, the team concluded that because the Decision Rule if Ho > than -1.645 (the critical value) the null hypothesis should be rejected. If the Ho were equal to or greater than the critical value the team should not reject the null hypothesis. The results yielded a 1.42 z value leading the team not to reject the null hypothesis and to conclude that interest does not result in larger account balances (Anguay, Pittendrigh, Thorson, Ward, 2011). In Week 3, using a two-sample test using Research Team used ANOVA (analysis of variances) testing. ANOVA testing is the comparison of two or more means simultaneously (Doane & Seward, 2007). Team B evaluated the mean balances in customer accounts at Century National Bank and attempts to determine if there is an effect on balances based on the independent variable accounts, and determine if there is a variance in balances based on the city (factor) in which the customer lives. The Null Hypothesis was Ho: A1 = A2 = A3 = A4 (The mean account balances are the same for all four cities). The Alternative Hypothesis was H1: Not all the mean account balances are the same (at least one city’s mean balance is different)....
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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Team+B+RES342+Week+4+Nonparametric+Statistical+Analysis+of+Account+Balances+vs.+Cities+FINAL

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