Data was collected from a sample of credit customers in the department chain store AJ DAVIS using statistical analysis. The analysis below consists of 3 quantitative methods, which are: size, income and credit balance, and one qualitative method which is location.
The 1st individual variable is Location:
It consists of 3 variable methods which are urban, suburban and rural. Below are the frequency distribution and pie chart:
Based on the frequency distribution and pie chart, it is clear that the maximum number of customers comes from rural location at 42%, the second highest amount of customers comes from suburban location at 30%, lastly 28% of the customers are from urban locations.
The 2nd individual variable is Size:
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The standard deviation is approximately 1.74. The Maximum number of customers has a household size of 2.
The 3rd individual variable:
The third variable to be taken into consideration is Credit Balance which is a quantitative variable. The measures of central tendency, variation and other descriptive statistics have been calculated for this variable and are given below:
Standard Error 132.0159991
Standard Deviation 933.4940816
Sample Variance 871411.2004
Relative Frequency Distribution:
Credit Balance ($) Frequency Relative Frequency
1500 - 2000 1 0.02
2000 - 2500 2 0.04
2500 - 3000 6 0.12
3000 - 3500 6 0.12
3500 - 4000 8 0.16
4000 - 4500 12 0.24
4500 - 5000 7 0.14
5000 - 5500 6 0.12
5500 - 6000 2 0.04
The mean credit balance of the customers is $3964.06. The standard deviation is approximately 933.49. The credit balance of the customers is a normal distribution that has a peak and a bell shaped distribution between $4000 - $4500. Therefore, the majority of customers have a credit balance within this range.
There is no definite relationship or association between the two variables, no specific pattern is present. There is no correlation among the variables Income and Size.
The relationship between the variables Income and Credit Balance is illustrated as follows:
There is a clear and definite relationship between the two variables. The variables Income and Credit Balance exhibit a linear positive relationship/correlation. As is evident, the higher the income the higher the credit balance and vice versa.
The relationship between the variables Years and Credit is below:
These two variables do not show any clear relationship. The points do not exhibit any specific pattern. There is correlation among these variables.