Anova Testing Of Atm Tranactions By Debit And Non-Debit Card Holders

Due to the latest technology in today's world nobody carries cash on them anymore; everyone use credit cards or bankcards. Using the statistical data provide by textbook: Lind, Marchal, and Wathen, (2008). Statistical Techniques in Business & Econimics, 13th edition. New York, NY: McGraw-Hill. An ANOVA test of debit bankcards is going to be done on whether people that have debit cards use the ATM as much as people that don't have debit cards.

An ANOVA test comparing the use of ATM's by people with bank debit cards versus people without bank debit cards. People with debit cards are less likely to make ATM transaction because they can use their bank debit cards at stores to pay for their items without having to go directly to their bank to make the withdraw. The test is going to use a significant level of .01 for the test. The null hypothesis is that there are less ATM transactions necessary for debit card holders than by non debit card holders.

ANOVA/Z TEST/F Distribution

ATM Debit Mean

Non-Debit Card Holders 352 34 10.35

Debit Card Holders 266 26 10.23

Sample Size = 60

Sig Level = 0.01

CV (4 numerator, 4 denominator) 15.98

Type MEAN ATM Transactions SD Sample Size (n-1)

Debit Card Holders 10.23 4.35 25

Non-Debit Card Holders 10.35 4.32 33

Right Tail Curve = 15.98 (CV)

F = 4.352/4.322 = 18.92/18.66 = 1.01

NOTE: Fail to reject null hypothesis because F is less than CV or critical value.

Conclusion: Debit card holders have less ATM transactions than Non-Debit Card holders.

The results of the tests and research proved to be quite enlightening to the hypothesis statement. I was expecting to be correct in the assumption in the case of debit card holders having to make less visits to ATM machines than non-debit card holders, but I was also prepared to be proven wrong in the same scenario should the study and information we discovered shed light on the other side of the argument in this case.

Reasoning out the hypothesis statement that people with debit cards would automatically no longer need to make as many trips to ATM machines does seem to be the logical deduction, as it only makes sense that a person who can then have access to his account and able to make withdrawals from any location that can accept debit cards would then have little need to go directly to his or her banks' own ATM machine. On the other hand, what may make sense does not always happen to be what occurs, and so we were ready to put our hypothesis to the test to prove our reasoning and confirm or refute our case.

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