My group decided on supporting the alternative hypothesis. We felt that it was in the best interest of Armed Forces Credit Union to proceed with offering cash back on all purchases made online. We thought this would benefit both the Credit Union and the consumer. By not restricting the incentive to only shoe stores, Armed Forces Credit Union allows the customer freedom to purchase any product and receive cash back. This in turn will increase the use of the credit card being offered by the Credit Union. This will also be an incentive to have customers apply for a credit card if they do not already have one. In the end, this option provided a better opportunity for growth for Armed Forces Credit Union.
In order to explain the purpose of developing null and alternative hypotheses, we must first understand exactly what each of these is. A null hypothesis is