Critical Thinking Essay

Angel Jones

Chapter 13 Critical Thinking

Question 6

Step 1: Hypotheses

H0: μ d = 0

Step 2: Significance Level

α = 0.05

Step 3: Critical Value(s) and Rejection Region(s)

Since we have paired data and do not know the population variance of the differences (σd2), we will use the paired t-test.

Critical Values:

Reject the null hypothesis if P Value is less than .05

Step 4: Test Statistic 

From the output Pair 1, T = -47.039 with 71 degrees of freedom

P - Value = Sig. (2 - tailed) = 0.000

                        Pair 2, T = -1.739 with 71 degrees of freedom

P - Value = Sig.  (2 - Tailed) = 0.086

                         Pair 3, T = 6.527 with 71 degrees of freedom

                                p - Value = Sig. (2 - tailed) = 0.000

Step 5: Conclusion

Pair 1 since (p-value = 0.000 less than or equal to 0.05 = α), we shall reject the null hypothesis.

Pair 2 since (p-value = 0.086 greater than or equal to 0.05 = α), we shall retain the null hypothesis.

Pair 3 since (p-value = 0.000 less than or equal to 0.05 = α), we shall reject the null hypothesis.

Step 6: State conclusion in words

At the α = 0.05 level of significance, there exists enough evidence to conclude that there is a difference in the mean attitudes assessed toward various cards at Pair 1 (Prefer 0% Interest promotion for 12 months and  Prefer $0 balance transfer fee).  Based on the scale: 1 = Not strongly prefer to 5 = strongly prefer, the credit union should create a Visa card that prefer $0 balance transfer fee, since more students attitudes show a preference based on the mean of 4.68. It shows that they prefer 0% balance transfer fee and creating a Visa product that prefer 0% Interest promotion for 12 months will not be wise and probably lead to fewer applicants since the mean various attitudes of 1.67  do not strongly prefer this offer.