897 words - 4 pages

Introduction

AJ Davis, a large department store chain, has enlisted my company to help them find out more about their customers who shop using credit. A sample of 50 credit customers were selected based on five variables which included location, income, size, years, and credit balance.

Location (Rural, Urban, Suburban)

Income (in $1,000s)

Size (Household Size)

Years (Number of Years That the Customer Has Lived in the Current Location)

Credit Balance (The Customers Current Credit Card Balance on the Store’s Credit Card)

We will take a look at three different variables at this time.

Location

The location variable has three subcategories which include rural, urban, and suburban. This ...view middle of the document...

13

Relative frequency shows the relative frequency of a class divided by the total number of frequencies of the class. The relative frequency distribution shows this data in chart form for easy viewing.

Relative Frequency Distribution

Credit Balance ($) Frequency Relative Frequency

2000 1 1/50= 0.02 = 2%

2500 5 5/50= 0.1 = 10%

3000 8 8/50= 0.16 = 16%

3500 6 6/50= 0.12 = 12%

4000 12 12/50= 0.24 = 24%

4500 5 5/50= 0.1 = 10%

5000 8 8/50= 0.16 = 16%

5500 5 5/50= 0.1 = 10%

Total: 50 Total: 100%

Interpretation: The mean credit balance of the customers is $3966. The standard deviation is 936.4 If you look at the histogram you can look at the peak of the bell-shaped distribution and note that it has peaked around $4000. The relative distribution chart tells us that 24% of cardholders carry an approximate $4000 balance. This means that a greater number of customers have a credit balance in this range.

Household Size

This variable looks at the number of people who live in the household.

Descriptive Statistics: SIZE

Total

Variable Count CumN Percent CumPct Mean SE Mean StDev Variance

SIZE 50 50 100 100 3.420 0.246 1.739 3.024

N for

Variable Minimum Median Maximum Range Mode Mode Skewness

SIZE 1.000 3.000 7.000 6.000 2 15 0.53

Frequency Distribution of Household Size

Size of Household Frequency

1 5

2 15

3 8

4 9

5 5

6 5

7 3

Total: 50

The mean household size of the customers is 3.420. The median is 3.000. The mode for household size for the customers is 2 and the N for...

Beat writer's block and start your paper with the best examples