A Serious Interest Penalty essays

A Serious Interest Penalty essays In this case, a bank, The Western National Bank, is trying to offer free checking benefits to those customers with a minimum balance great enough to do so. The bank ¡s problem is finding the amount the minimum balance should be, as well as meeting certain criteria given in their advertisement. Some details of the criteria are that they would like to be able to claim that the mean account balance exceeds the minimum balance required to qualify for free checking. They also desire that less than half of all accounts have a balance that exceeds the minimum balance required to qualify for free checking. A financial product manager at the bank has made a suggestion of $1,500.00 for the minimum balance. The bank wants to know if $1,500.00 is used as the minimum balance, then would they meet the criteria stated in the advertisement. In analyzing the given data, it was noted that this problem could be approached by using hypothesis testing. In viewing this case, it was determined that the case was asking two questions which had to be answered by using both proportional hypothesis testing and mean hypothesis testing. By using hypothesis testing, many assumptions had to be made. First of all, both hypotheses had to be made. It also had to be concluded what values were to be considered a failure or a correct value. A bell curve had to be drawn for both hypotheses to illustrate and more clearly see the data. After more clearly representing the data on the graph, it was analyzed to determine if the calculated values fell within the given intervals. The first step in the problem is to understand that the case is asking two questions: one which was a proportion, and the other which was a mean value. In understanding this, two different problems had to be approached in solving the original problem. I first began with the mean hypothesis. I stated that the null hypothesis was Æ’Ã  ...