One Sample Hypothesis Testing
Learning Team A
RES 342
February 13, 2012
Instructor
One Sample Hypothesis Testing
Research begins with a question. A quote by American economist Thorstein Veblen states, “the outcome of any serious research can only be to make two questions grow where only one grew before.” Team A will use the Century National Bank data set to answer the question: Do people that use their debit card have lower than average banking account balances? This question will be the basis to formulate both a numerical and verbal hypothesis statement. A five-step hypothesis test is performed as it relates to Century National Bank data pertaining to the research. Finally, a description of the test results will explain how the findings from the hypothesis testing may be used to answer the research question.
Hypothesis Statement
In the hypothesis development stage of the research process, one must determine which variables he or she deems important. The researcher will also develop a theory of the relationship between the variables they believe will hold true through statistical analysis and testing (Sekaran, 2003). In this case after reviewing the Century National Bank data set, Team A members theorized that a relationship exists between debit card holders and checking account balances. Team A believes that bank customers who use their debit card also maintain lower than average checking account balances. Therefore, the team’s null hypothesis states: ‘Bank customers who use their debit card maintain higher than average account balances’. In hopes of rejecting this hypothesis, the team’s established alternate hypothesis states ‘Bank customers who use their debit card maintain lower than average account balances.’ Including numerical values based on the data provided, the team will test a null hypothesis stating Century National Bank customers who use their debit card maintain balances higher than the average of $1499 and hope...