Century National Bank – Cases

Chapter 9 (Estimation & Confidence Intervals)

Case 1.

When Mr. Selig took over as president of Century several years ago, the use of debit cards was just beginning. He would like an update on the use 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 debit card? Write a brief report interpreting the results.

Chapter 14 (Multiple Regression Analysis)

Case 2.

Refer to the CNB data. Using checking account balance as the dependent variable and using the independent variables as 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, 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 proposed be used in the analysis or can some be dropped?

Chapters 10-12 (One Sample, Two Sample tests & Analysis Variance)

Case 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 $1600. Does the sample data indicate that the mean account balance has declined from this value?

Recent years have also seen an increase in the use of ATM machines. When Mr. Selig took over the bank the mean number of transactions per month per customer was 8; now he believes it has increased to 10. In fact, the advertising agency that prepares TV commercials for CNB 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?

The bank has branch offices in four different cities; Cincinnati, OH, AtlantaGA, LouisvilleKY and EriePA. Mr. Selig would like to know whether 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?

Mr. Selig is also interested in the bank’s ATM’s. Is there a difference in ATM use among the branches? Also, do customers who have debit cards tend to use ATMs differently from those who do not have debit cards? Is there a difference in ATM use by those with checking accounts that pay interest versus those that do not? Prepare a report for Mr. Selig answering these questions.

Chapter 10-12 (One Sample, Two Sample tests & Analysis Variance)

Case Study - Bell Grove Medical Center

Ms. Gene Dempsey manages the emergency care center at BellGroveMedicalCenter. One of her responsibilities is to have enough nurses so that incoming patients needing service can be handled promptly. It is stressful for patients to wait a long time for emergency care even when their care needs are not life threatening. Ms. Dempsey gathered the following information regarding the number of patients over the last several weeks. The center is not open on weekends. Does it appear that here are any differences in the number of patients served by the day of the week? If there are differences, which days seem to be the busiest? Write a brief report summarizing your findings.

Date / Day / Patients
9/26/06 / Monday / 38
9/30/06 / Tuesday / 28
10/1 / Wednesday / 28
10/2 / Thursday / 30
10/3 / Friday / 35
10/6 / Monday / 35
10/7 / Tuesday / 25
10/8 / Wednesday / 22
10/9 / Thursday / 21
10/10 / Friday / 32
10/13 / Monday / 37
10/14 / Tuesday / 29
10/15 / Wednesday / 27
10/16 / Thursday / 28
10/17 / Friday / 35
10/20 / Monday / 37
10/21 / Tuesday / 26
10/22 / Wednesday / 28
10/23 / Thursday / 23
10/24 / Friday / 33