Monday, November 14, 2011

Bank Transfer Day Black Box

The Credit Union National Association (CUNA) claims that more than 40,000 consumers joined credit unions on November 5, “Bank Transfer Day.”

CUNA extrapolated the results to the entire industry based upon the results from a survey sent to 1,100 credit unions.

However, CUNA conveniently failed to disclose the participation or response rate to this survey.

Why all the mystery?

Is it due to a low response rate?

A high response rate helps to ensure that survey results are representative of the credit union industry. Without a good response rate, the survey is unlikely to produce accurate and useful results.

Furthermore, the results of the survey may be suspect because of a self-selction bias associated with the credit unions that responded to the survey. A self-selection bias is possible whenever the group being surveyed has any form of control over whether to participate in the survey. Therefore, it is possible that the the credit unions that responded to the survey are disproportionately represented by credit unions that added members on Bank Transfer Day, not those that did not add members.

The failure to disclose the response rate and the potential of self-selection bias raises doubts about the accuaracy and usefulness of the survey's results.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.