QA 233 (Basic Business Statistics)
Case Assignments
Case 6
A
Serious Interest Penalty
The Western National Bank (WNB) is considering implementation of a policy
to the to waive fees for checking accounts with a minimum balance. For
advertising purposes, they would like to be able to claim that the mean account
balance exceeds the minimum balance required to qualify for free checking.
Additionally, for obvious reasons, they also desire that less than half of all
accounts have a balance that exceeds the minimum balance required to qualify for
free checking. Gail Morgan, a Financial Product Manager at WNB, has suggested a
$1,500.00 minimum balance required to qualify for free checking. To assess if
this suggestion will satisfy the bank’s stated criteria, Ms. Morgan randomly
selects and records the balances for the personal checking accounts of thirteen males and thirteen females. The September 15,
2004 balances of
these twenty-six accounts are provided below. Use the data that she has
collected to determine, at the 95% level of confidence, if the suggested
$1,500.00 minimum balance required to qualify for free checking meets WNB’s
criteria.