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# Balance ATM 343 580 1006 1501 1784 1913 1746 1995 2125 2204 2375 2409 32 137 740 1326 2144 167 765 789 1169 1266 748 1044 1218 1320 1474 1593 1708

Case Questions:

1. Develop a graph and a table that shows descriptives (central tendency measures and dispersion measures) of the checking balances.

2. When Mr. Sleig took over as president of Century several years ago, the use of debit cards was just beginning. He would like an update of the use of these cards. Develop a 95% confidence interval for the proportion of customers using these cards. On the basis of the confidence interval, is it reasonable to conclude that more than half of the customers use a debut card? Interpret the results.

3. With many other options available, customers no longer let their money sit in a checking account. For many years the mean checking balance has been \$1,600. Does the sample data indicate that the mean account balance has declined from this value?

4. Recent years have also seen an increase in the use of ATM machines. When Mr. Sleig 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 commercials 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?

5. The bank has branch offices in four different cities mentioned earlier. Mr. Sleig would like to know if there is a difference in the mean checking account balances among the four branches. If there are differences, between which branches do these differences occur?

6. Mr. Sleig is also interested in the ATMs. Is there a difference in the ATM use among the branches? Also do customers who have debit cards tend to use ATMs differently from those who don’t have debit cards? Is there a difference in ATM use by those with checking accounts that pay interest versus those that do not?

7. At a 0.05 significance level, is there a relationship between the location of the branch and whether the customer has a debit card?

8. Using checking account as the dependent variable and using the number of ATM transactions, the number of other services used, whether the individual has a debit card, and whether interest is paid on the particular account as independent variables, write a report indicating which of the variables seem related to the account balance and how well they explain the variation in account balances. Should all of the independent variables be used in the analysis or can some be dropped? Did you notice any indications to multicollinearity, heteroscedasticity or to autocorrelation?

Balance ATM Services Debit Interest City 343 7 2 0 0 1 580 4 1 0 0 1 1006 12 4 0 0 1 1501 10 1 0 0 1 1784 11 5 0 0 1 1913 6 5 0 0 1 1746 11 2 0 0 2 1995 10 7 0 0 2 2125 18 6 0 0 2 2204 14 5 0 0 2 2375 12 4 0 0 2 2409 16 8 0 0 2 32 2 0 0 0 3 137 7 2 0 0 3 740 6 3 0 0 3 1326 16 8 0 0 3 2144 17 3 0 0 3 167 5 4 0 0 4 765 4 3 0 0 4 789 8 4 0 0 4 1169 6 4 0 0 4 1266 11 7 0 0 4 748 9 2 1 0 1 1044 7 5 1 0 1 1218 10 3 1 0 1 1320 4 5 1 0 1 1474 12 7 1 0 1 1593 10 8 1 0 1 1708 13 3 1 0 1 1125 6 4 1 0 2 1338 14 4 1 0 2 1675 6 7 1 0 2 1958 6 2 1 0 2 2076 12 5 1 0 2 2156 14 5 1 0 2 1053 8 4 1 0 3 1120 8 6 1 0 3 1554 12 6 1 0 3 2276 15 4 1 0 3 634 2 7 1 0 4 1487 8 4 1 0 4 2051 14 4 1 0 4 2215 20 3 1 0 4 2557 20 7 1 0 4 890 7 1 0 1 1 1494 11 2 0 1 1 1886 17 3 0 1 1 1526 8 4 0 1 2 1756 13 4 0 1 2 1989 12 3 0 1 2 1735 12 7 0 1 3 1790 11 4 0 1 3 1831 10 4 0 1 3 1622 14 6 0 1 4 1645 6 9 0 1 4 2138 18 5 0 1 4 1616 10 4 1 1 2 1885 10 6 1 1 2 1455 9 5 1 1 3 1838 7 5 1 1 3

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