In this activity, you will compare the mean amounts transferred for two different Bank of America customers as well as design some studies that might help the marketing department determine where to allocate more of its advertising budget.

1. You will need to work with another student in the class on this exercise. Each of you should use your data set Amounts Transferred from the Chapter 1 Activity as a random sample from a theoretically larger set of all your amounts ever transferred. Then the means and standard deviations of your data sets will be the sample means and standard deviations. Write a confidence interval for the difference of the two means at the 95% level. Does the interval contain 0? Are your mean amounts transferred significantly different? Explain.

2. Design a study to determine whether there is a significant difference in the mean amount of Bank of America matches for customers in California enrolled in the program and the mean amount of Bank of America matches for customers in Florida enrolled in the program. Be specific about sample sizes, tests used, and how a conclusion will be reached. How might the results of this study help Bank of America estimate costs in the program?

3. Design a study to determine whether there is a significant difference in the percentage of Bank of America customers in California enrolled in the program and the percentage of Bank of America customers in Florida enrolled in the program.

Be specific about sample sizes, tests used, and how a conclusion will be reached. How might the results of this study help Bank of America’s marketing department?