The Chi-Square Goodness-Of-Fit Test for a Poisson distribution- Application to the Banking System

Sulaimon Mutiu O., Oyefusi Olutayo A., Ayeleso Timothy O.

Abstract


This study covers the Chi-square goodness-of-fit test of the Poisson distribution of customers’ arrivals rate. A case study of First Bank Plc., Panseke, Abeokuta, Ogun State, Nigeria was used. Data on customers’ arrival rate per 5minutes  for duration of 5 hours (9am – 2pm) was collected for the research study. The data for this study was collected via primary method of data collection with the principle of observation method which involves the physical presence of the researchers collecting the data and the subject of enquiry. The Poisson distribution was used to find the probability of a specific number of arrivals per “5 minutes”. To determine whether the number of arrivals per 5 minutes follows a Poisson distribution, the Chi-square goodness-of-fit-test was employed. The average arrival rate is estimated to be approximately 31 customers per 5 minutes. The highest and lowest expected frequencies are 4 and 0 respectively while the highest and the lowest observed frequencies are respectively 7and 0. With respect to the case study employed, scope of the study, research question, research design, method of data collection and technique of analysis, the research results revealed that arrival rate of customers to a banking system per 5 minutes in the duration of 5hours with average arrival rate of 31 customers does not follow a Poisson distribution.

Keywords: Banking System, Chi-square, Goodness-of-fit Test, Poisson Distribution


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Copyright (c) 2016 Sulaimon Mutiu O., Oyefusi Olutayo A., Ayeleso Timothy O.

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