Extra Facility
CHI 2 ANALYSIS OF VARIANCE
If a sample of size n is taken from a population having a normal distribution, then there is a well-known result (see distribution of the sample variance) which allows a test to be made of whether the variance of the population has a pre-determined value.
For example, a manufacturing process might have been in stable condition for a long period, allowing a value for the variance to be determined essentially without error. Suppose that a variant of the process is being tested, giving rise to a small sample of product items whose variation is to be tested. The test statistic T in this instance could be set to be the sum of squares about the sample mean, divided by the nominal value for the variance (i.e. the value to be tested as holding).
Then T has a chi-squared distribution with n − 1 degrees of freedom. For example if the sample size is 21, the acceptance region for T for a significance level of 5% is the interval 9.59 to 34.17.
There are basically two types of random variables and they yield two types of data: numerical and categorical. A chi square (X2) statistic is used to investigate whether distributions of categorical variables differ from one another. Basically categorical variable yield data in the categories and numerical variables yield data in numerical form.
We are doing chi2 test of independence of variance. It is a test of checking effect of change in one variable on another variable. The formula of chi2 test of independence is below with various steps of testing the hypothesis value of chi2.
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STEP – 1:- For a contingency table that has r rows and c columns, the chi square test can be thought of as a test of independence. In a test of independence the null and alternative hypotheses are:
STEP – 2:- Ho: The two categorical variables are independent.
STEP - 3:- Ha: The two categorical variables are related.
STEP – 4:- We can use the equation:- Chi Square(χ2) = ∑ (fo - fe)2 / fe
Here, fo denotes the frequency of the observed data fe is the frequency of the expected values.
STEP – 5:- Find the df. (N-1)
STEP – 6:- Find the table value (consult the Chi Square Table.)
STEP -7:- If your chi-square value is equal to or greater than the table value, reject the null hypothesis: differences in your data are not due to chance alone.
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H1 - STEP – 1:- We are taking 2 variables for hypothesis from the given objectives.
1) Preference of consumer 2) Age of the respondents
STEP – 2:- H0: preference of the new product of NEFT/RTGS is independent on consumer’s age.
STEP – 3:- H1: preference of the new product of NEFT/RTGS isn’t independent on consumer’s age.
STEP – 4:- We are using chi2 for the given objectives with the help of SPSS software.
χ2 = ∑ (fo - fe)2 / fe
$Pref
EASY TRANSACTION LESS COSTLY USING LESS TIMING
Count Count Count
Conclusion:- Preference of the new product NEFT/RTGS is totally independent on age. Here p- value is 0.747 which is greater than.05 the null hypothesis will be accepted.
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H2 - Now we take another objective for creating hypothesis. Again there are two objectives.
1) Age of the respondents 2) Extra facilities preference
STEP – 1:- H0: Extra facilities using by respondents to get acknowledgement of their transaction is Independent on age.
STEP – 2:- H1: Extra facilities using by respondents isn’t Independent on age.
STEP – 3:- We are using chi2 for the given objectives with the help of SPSS software.
$Extra Facility
ONLINE INFORMATION TELE CALLING MOBILE BANKING
Count Count Count
Conclusion:- Extra facilities using by respondents to get acknowledgement of their transaction is totally independent on age. Here p- value is 0.449 which is greater than0.05 the null hypothesis will be accepted.
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H3:– Age is independent with products
$product types
DD MT TT BC NEFT RTGS
CASH TRANSACTION Count Count Count Count Count Count Count
AGE 10-20 0 0 0 0 0 0 1
20-30 3 0 0 2 2 2 14
> 30 2 0 0 0 23 32 2
Pearson Chi-Square Tests
$product types AGE Chi-square 91.418
Df 10
Sig. .000*,a,b
Conclusion:- Here in that case our null hypothesis is rejected it means age isn’t independent with products.
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H4 – Gender is independent to the products.
$product types
DD MT TT BC NEFT RTGS
CASH TRANSACTION Count Count Count Count Count Count Count
GENDER MALE 5 0 0 2 23 33 14
FEMALE 0 0 0 0 2 1 3
Pearson Chi-Square Tests
$product types GENDER Chi-square 8.627
Df 5
Sig. .125a,b
Conclusion:- Here in that case our null hypothesis is accepted because calculated value is more than the tabulated value. So gender is independent to products.
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H5:- Occupation is an independent to products.
$producttypes
DD MT TT BC NEFT RTGS
CASH TRANSACTION Count Count Count Count Count Count Count
OCCUPATION BUSINESSMAN 2 0 0 0 24 33 2
STUDENTS 1 0 0 0 1 1 10
ORGANIZATION 0 0 0 0 0 0 1
PROFESSIONAL 2 0 0 2 0 0 4
Pearson Chi-Square Tests
$product types OCCUPATION Chi-square 126.918
df 15
Sig. .000*,a,b
Conclusion:- In that case our null hypothesis is rejected because table value is more than the calculated value. So occupation is not independent to the products.
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H6:- Age is independent to awareness of respondents about the RBI’s products.
AWARENESS
YES NO
Count Count
AGE 10-20 0 1
20-30 8 7
> 30 34 0
Pearson Chi-Square Tests
AWARENESS AGE Chi-square 22.222
df 2
Sig. .000*,a,b
Conclusion:- Here the chi – square table value is more than the calculated value so our null hypothesis is rejected it means age is dependent to awareness about the new product.
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H7:- Gender is independent to awareness about the new products.
AWARENESS
YES NO
Count Count
GENDER MALE 37 8
FEMALE 5 0
Pearson Chi-Square Tests
AWARENESS GENDER Chi-square 1.058
df 1
Sig. .304a,b
Conclusion:- Here null hypothesis is accepted because P – value is 0.304 which is greater than the 0.05. It means gender is independent to awareness about the products.
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H8:- Occupation is independent to awareness about the new products.
AWARENESS
YES NO
Count Count
OCCUPATION BUSINESSMAN 35 0
STUDENTS 3 7
ORGANIZATION 1 0
PROFESSIONAL 3 1
Pearson Chi-Square Tests
AWARENESS OCCUPATION Chi-square 28.795
df 3
Sig. .000*,a,b
Conclusion:- In this case our null hypothesis is rejected because P- value is 0.000 which is less than the 0.05. It means occupation is totally dependent to awareness about the RBI’s new product.
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H9:- NEFT/RTGS transaction is totally independent to age.
WAYSOFAWARENESS
Conclusion:- In this case our null hypothesis is rejected because our P-value is 0.000 which is less than 0.05 so that age is totally dependent on ways of awareness about the products.
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H10:- Gender is independent to ways of awareness.
WAYS OF AWARENESS GENDER Chi-square 23.529
df 4
Sig. .000*,a,b
Conclusion:- Here in this case the null hypothesis is rejected because our p – value is 0.000 which is less than the 0.05. It means gender is totally dependent on ways of awareness.
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H11:- Occupation is independent to ways of awareness
WAYSOFAWARENESS OCCUPATION Chi-square 72.398
df 12
Sig. .000*,a,b
Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05 so that our null hypothesis is rejected. It means occupation is totally dependent on ways of awareness.
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H12:- Transaction of NEFT/RTGS is independent to age.
TRANSACTION DONE(on week basis)
EVERYDAY
ONCE IN A WEEK
TWICE IN A WEEK
MORE THAN 3 TRANSACTION
DURING WEEK NONE
Count Count Count Count Count
AGE 10-20 0 0 0 0 1
20-30 1 2 0 0 12
> 30 21 6 1 6 0
Pearson Chi-Square Tests
TRANSACTION DONE AGE Chi-square 38.978
Df 8
Sig. .000*,a,b
Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05 so that our null hypothesis is rejected. It means age is totally dependent on transaction of NEFT/RTGS.
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H13:- Transaction of NEFT/RTGS is independent to gender.
GENDER MALE FEMALE Count Count TRANSACTION DONE
(weekly basis)
EVERYDAY 21 1
ONCE IN A WEEK 8 0
TWICE IN A WEEK 1 0
MORE THAN 3
TRANSACTION DURING WEEK
5 1
NONE 10 3
Pearson Chi-Square Tests
GENDER TRANSACTIONDONE Chi-square 4.494
Df 4
Sig. .343a,b
Conclusion:- Here null hypothesis is accepted because P – value is 0.343 which is greater than the 0.05. It means transaction of NEFT/RTGS is independent to gender about the products.
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H14:- Transaction of NEFT/RTGS is independent to occupation.
TRANSACTION DONE(weekly basis) OCCUPATION Chi-square 43.698
df 12
Sig. .000*,a,b
Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05 so that our null hypothesis is rejected. It means occupation is totally dependent on transaction of NEFT/RTGS.
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H15:- Occupation is independent to satisfaction of respondents.
SATISFACTION
YES NO
Count Count
OCCUPATION BUSINESSMAN 35 0
STUDENTS 1 9
ORGANIZATION 0 1
PROFESSIONAL 1 3
Pearson Chi-Square Tests
SATISFACTION OCCUPATION Chi-square 41.424
df 3
Sig. .000*,a,b
Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05 so that our null hypothesis is rejected. It means occupation is totally dependent on satisfaction of respondents.
H16:- Gender of respondent is totally independent to preference of consumers.
$Preference
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Pearson Chi-Square Tests
$Preference GENDER Chi-square 3.215
df 3
Sig. .360a,b
Results are based on nonempty rows and columns in each innermost subtable.
a. More than 20% of cells in this subtable have expected cell counts less than 5.
Chi-square results may be invalid.
b. The minimum expected cell count in this subtable is less than one. Chi-square results may be invalid.
Conclusion:- Here null hypothesis is accepted because P – value is 0.360 which is greater than the 0.05. It means preference is independent to gender about the products.
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H17:- Occupation is independent to customer’s preferance.
$Preference EASY
TRANSACTION
LESS COSTLY
USING LESS TIMING
Count Count Count
OCCUPATION BUSINESSMAN 12 26 13
STUDENTS 0 1 0
ORGANIZATION 0 0 0
PROFESSIONAL 1 0 1
Pearson Chi-Square Tests
$Preference OCCUPATION Chi-square 7.759
df 6
Sig. .256a,b
Conclusion:- Here null hypothesis is accepted because P – value is 0.256 which is greater than the 0.05. It means preference of respondent is independent to gender about the products.
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H18:- Gender is independent to get extra facilities for acknowledgement by the respondents.
$Extra Facility ONLINE
INFORMATION TELE CALLING
MOBILE BANKING
Count Count Count
GENDER MALE 8 18 18
FEMALE 2 3 2
Pearson Chi-Square Tests
$Extra Facility GENDER Chi-square 1.848
df 3
Sig. .604a
Conclusion:- Here null hypothesis is accepted because P – value is 0.604 which is greater than the 0.05. It means gender is totally independent is to get extra facility for acknowledgement by respondents.
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H19:- Occupation is independent to get extra facilities for acknowledgement by the respondents.
$Extra Facility ONLINE IN
FORMATION TELE CALLING
MOBILE BANKING
Count Count Count
OCCUPATION BUSINESSMAN 6 15 15
STUDENTS 2 5 2
ORGANIZATION 1 1 0
PROFESSIONAL 1 0 3
Pearson Chi-Square Tests
$Extra Facility OCCUPATION Chi-square 14.859
df 9
Sig. .095a,b
Conclusion:- Here null hypothesis is accepted because P – value is 0.095 which is greater than the 0.05. It means occupation is totally independent is to get extra facility for acknowledgement by respondents.
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To Summarize
Firstly we would like to give our conclusion on the consumers that on the basis of the hypothesis is relate with customer preference about the new products with the compare of the respondents’ age, occupation & gender also include satisfaction of the respondents about the products their awareness about the products etc.
Table of hypothesis:-
Particulars Related with P – value Accepted/Rejected
Age Products 0.000 Rejected
Gender Products 0.125 Accepted
Occupation Products 0.000 Rejected
Age Awareness 0.000 Rejected
Gender Awareness 0.304 Accepted
Occupation Awareness 0.000 Rejected
Age Transaction done
times 0.000 Rejected
Gender Transaction done
times
0.343 Accepted
Occupation Transaction done
times 0.000 Rejected
Age Way of awareness 0.000 Rejected
Gender Way of awareness 0.000 Rejected
Occupation Way of awareness 0.000 Rejected
Age Preference 0.747 Accepted
Gender Preference 0.360 Accepted
Occupation Preference 0.256 Accepted
Age Extra facility 0.449 Accepted
Gender Extra facility 0.604 Accepted
Occupation Extra facility 0.095 Accepted
Satisfaction Preference 0.000 Rejected
On the basis of above table of hypothesis age, occupation & gender of the respondents is affected the preference of the customer & extra facility is also affected to the customer’s age, occupation & gender. So that our hypothesis is accepted in above cases in others it is rejected.
76 transfer from one account to another account in particular branch.
Another reason is that it is less costly as compare to the traditional product & the transaction is too easy.
As per our study our non potential customer does not know about the product because of less banking transaction & awareness also responsible for that.
Consumers usually doing this type of transaction for transferring the funds to another party behind that the main reason is trading of goods &
services.
Students which are our non – potential customers as well as professional also are not using these products for fees transferring & other activities.
They are using traditional products like BC/DD etc.
In NEFT/RTGS the transaction cost is low as compare to traditional products so that’s why customers choose this types of products & also it is taking less timing & easy to transfer.
Our non potential customer not choosing these types of transaction because of cheque book because in NEFT/RTGS transaction the basic requirement of customer is cheque book. In student saving account sometime they have not take cheque book from bank & also they are access their account through 0rs. Balance. So they are not aware as well as they are not doing in such type of transaction.
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Bank of Baroda
Bank of Baroda takes charge in traditional products like BC/DD is minimum cost 56rs. Up to 10000rs. After that it is 4.5rs. Per1000 amount
& maximum is 16,645rs. In compare to NEFT/RTGS the minimum cost is 6 to 7rs. as per the transaction which is decided by the RBI & maximum cost is 61rs. Above 200000rs. Transaction its cost is only 28rs. It’s only
Error/loss for bank. So that’s why RBI launching new products which is beneficial for everybody.
In bank there are 2 categories of transaction NEFT & RTGS.
NEFT transaction is done when your fund transfer amount is less than 200000rs.
Above 200000rs. It is automatically converting in RTGS transaction. This criterion is decided by the RBI.
In NEFT transaction the fund transferring validity is maximum 3 days in case of accesses of internet connection & clearing process otherwise its transfer immediately.
It’s using IFSC codes for different branch which have 11 character codes which is useful to identify the branch & bank.
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If you going through traditional products through cash transaction it’s too costly transaction its amount is 90rs. Per transaction because its cost is 1.5times which is payable by customers to bank. In traditional product transaction, PAN card must require.
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SUGGESTIONS
Bank provides all facilities related to NEFT/RTGS so use it maximum for fund transferring.
Any bank branches are available in any state in any city because RBI is a nationalized bank & their products are also nationalized so that the transaction of NEFT/RTGS is done at any place.
The procedure of transaction is simple, it requires one bank account either it is saving or it is current account & one cheque book that’s it.
one NEFT/RTGS form which requires both parties name & address with phone number or email-id with the amount which will transfer from 1 place to another & also a balance available in bank account & also requires a sender’s PAN card number.
I suggest the bank reduce the traditional product transaction rate for students who are using DD/BC’s transactions.
I also suggest the bank that aware the customer about the new product of the RBI through give proper guidance.
Prepare 1 extra team for helping the customer who provides whole knowledge about the transaction with the help of cost effectiveness.
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Bibliography
Bibliography
Banking industry analysis. (2011, February 3). Retrieved July 2012, from www.b1dcity.com: http://www.b1dcity.com
Wikipedia RTGS . (n.d.). Retrieved 7 2012, from wikipedia:
http://www.wikipedia.org.in
RBI, C. g. (2012, 1 31). Reserve bank of India. Retrieved 7 2012, from rbi.org.in: http://www.rbi.org.in
BOB, C. g. (n.d.). Bank Of Baroda. Retrieved 7 2012, from bankofbaroda:
http://www.bankofbaroda.com
SCHINDLER, C. &. (2011). RESEARCH METHODOLOGY. In C. &.
SCHINDLER, BUSINESS RESERCH METHODS (p. 757). NEW DELHI:
McGraw Hill Education Private Limited.
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QUESTIONNAIRE FOR CONSUMERS