Description
Do as the previous one with the outline as separate, that will help me in the oral exam after this. can you do the outline for the first question, you already answered that I will add extra money to the tip. Have to do all the tests for this question and then choose the right test. Please do this before Friday. have to submit it by Sunday this weekend.
Question #3
As a newly minted DBA student from Saint Mary’s University of Minnesota, you have decided to start a consulting firm. At this point, the firm is small, just you and another recent graduate of the program. Although you and your partner only incorporated two weeks ago, the consultancy is fortunate enough to land its first contract. Excited about the opportunity to leverage skills gleaned from your learning experience, you and your business associate have decided to accept the opportunity.
Your new client, one of the largest banks in the Midwest, has secured your services in order to better understand how interest rates potentially impact their business. The executive team of the bank believes that higher interest rates will lead to an increase in saving account deposits. Thus, the need for your services. You have been given a week to analyze the information in Appendix A in order to provide the client with insights as to next steps. The client realizes that the information provided in Appendix A is only preliminary data and is not meant to provide a final answer, however, it can be used to proffer insights into whether the notion of higher interest rates will result in increased saving deposits. The information offered by the client only sheds light on a sample of 20 accounts at the bank, thus it is only a sample of the population. The data includes the average dollar amount of deposit on hand for the previous three months before the rate increase and the three months average for the same individual after the feds increased the federal funds rate from 1% to 2%. Between the two sets of deposit data there was only one interest rate increase. Thus, before the increase, the federal funds rate was 1% and after the increase, the rate was increased to 2%.
Ultimately, you and your partner has been charged with analyzing the data in Appendix A and providing a written report as to whether the data appears to support or refute the firm’s belief in the interaction between interest rates and average daily deposit amounts. In the process of doing so, you are specifically asked to address the following questions.
State the hypothesis that will be used to test the executive team’s hunch about the interaction between rates and average saving deposit amounts.
Provide justification (scholarly) for the use of the particular statistical tool(s) used to address the question.
State the alpha level and why you selected that particular level of accuracy.
Offer the statistical findings coupled with proper interpretation of the results.
If you were to gather data to further support your findings, what additional information / data would you need and why?
What do you believe should be the next steps for the executive team, in lieu of the results?
Appendix A
Average three month daily deposit amount @ 1%
Average three month daily deposit amount @ 2%
Client #1
$8,900.00
$11,000.00
Client #2
$6,860.00
$7,200.00
Client #3
$7,000.00
$6,010.00
Client #4
$13,000.00
$13,650.00
Client #5
$5,470.00
$6,300.00
Client #6
$5,090.00
$6,010.00
Client #7
$2,450.00
$3,150.00
Client #8
$3,660.00
$4,175.00
Client #9
$11,000.00
$11,050.00
Client #10
$11,980.00
$15,380.00
Client #11
$4,560.00
$6,700.00
Client #12
$5,690.00
$61,350.00
Client #13
$8,100.00
$7,030.00
Client #14
$4,500.00
$5,010.00
Client #15
$7,010.00
$7,950.00
Client #16
$9,050.00
$12,300.00
Client #17
$10,110.00
$12,400.00
Client #18
$3,500.00
$2,900.00
Client #19
$5,060.00
$6,375.00
Client #20
$6,790.00
$6,960.00
