A financial institution is interested in offering a Christmas Club service to it

Question

A financial institution is interested in offering a Christmas Club service to its’ customers. The Christmas Club is a saving scheme. The financial institution is therefore interested in determining customers’ interest in joining the scheme, if implemented, and the average amount of money that customers can deposit each month towards the Christmas Club. The manager of the financial institution is also interested in determining the relationship between customers’ gender, age, academic qualification, monthly income and their interest in joining the Christmas Club. The manager asked you to take the lead on this project.

Therefore, you are required to:

1. Identify a suitable method of gathering data for this investigation. Justify your choice.

2. Design an instrument, with at least 5 questions, that can be used to gather data for this investigation.

3. Identify the type of data (quantitative/qualitative, discrete/continuous) that will be gathered from each of the questions on your proposed instrument.

4. Identify the population for this investigation.

5. Describe, explicitly, how you would select a sample for this investigation.

6. Identify any flaws in your sampling technique.

7. The manager informed you that the mean savings for all customers of the financial institution is US$532,965.65. Is this value a parameter or a statistics? Justify your answer.

Explanation / Answer

Since, it is a financial institution offering a savings plan, one must adopt a Stratified sampling with stratas based on age or financial incomes for the said investigation as the needs and the ability to save varies with the age and the earning ability.

The questionnaire can contain all the parameters we are interested to know

The population for this investigation are all the people who are the customers of the financial institution.

The sample might be selected by making stratas or groups based on age, gender or income earned per month. Then a simple random sample may be chosen from each strata who is subjected to the above questions.

The value of mean is for the entire population. Hence, it is a statistic.

Hope this helps.

Question Type of Variable Sub-type (if any) Gender Qualitative Age Quantitative Discrete Income Quantitative Continuous Education Qualitative Interest in joining Qualitative

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