A Serious Interest Penalty

In this case, a bank, The Western National Bank, is trying to offer free examination benefits to those customers with a minimum balance great sufficient to do so. The bank problem is finding the amount the minimum balance should be, as well as gathering certain criteria given in their announcement. Some details of the criteria are that they would like to be able to claim that the account balance exceeds the minimum balance required to succeed for free checking. They also wish that less than half of all accounts have a balance that exceeds the minimum balance required to be eligible for free checking. A financial manager at the bank has made a offer 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 confirmed in the advertisement.

In analyze the given data, it was noted that this problem could be approach by using hypothesis testing. In viewing this case, it was resolute that the case was asking two questions which had to be answered by using both proportional hypothesis testing and mean hypothesis testing.