Essay on Stats Project 1 phase A

Submitted By jalvarez0477
Words: 978
Pages: 4

AJ DAVIS
DEPARTMENT STORES

Credit Customer Sample Analysis

September 16 2013
Created by:
Created for: Upper Management

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Income by Location
(Bar Graph) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Credit Balances by Income
(Histogram) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Credit Balances by Size
(Scatterplot) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Credit Balances by Location
(Box Plot) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Size Frequency
(Dotplot) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

INTRODUCTION

AJ Davis is a department store chain with many customers who hold credit accounts at the store. The company’s management group wants to analyze the data collected and summarized to determine if there is any connection or relationship between the information gathered from the customers.

Sample of 50 credit customers with the following variables:

1) LOCATION (Rural, Urban, Suburban)
2) INCOME (in $1,000’s)
3) SIZE (the number of people living in the household)
4) YEARS (the number of years that the customer has lived in the current location)
5) CREDIT BALANCE (the customers current credit balance)

The process of reviewing and analyzing the collected data could be done by various methods including, but not limited to; charts, graphs, and mathematical equations. The outcome of this process does not reflect an analysis of the whole business, since this procedure will be conducted on a sample basis.

Descriptive Statistics: Income ($1000)

Variable Location Min Q1 Median Q3 Max
Income ($1000) Rural 22.00 28.50 31.00 39.50 50.00 Suburban 22.00 39.00 54.00 63.00 67.00 Urban 21.00 32.75 48.00 55.00 67.00
Central Tendency: Mean
Rural 33.69
Suburban 50.67
Urban 44.95
Variability: Standard Deviation
Rural 7.79
Suburban 15.26
Urban 14.56
Interpretation
The minimum income by location is relively close between all three locations. It’s not until the median where a large gap betwwen the suburban and the rural locations are far apart. At the maximum income level the suburban and the urban incomes are the same, but the rural income is still low at the max level.

Descriptive Statistics: Income ($1000), Credit Balance

Variable Mean Minimum Median Maximum
Income ($1000) 43.74 21.00 43.00 67.00
Credit Balance ($) 3970 1864 4090 5678

Central Tendency: Mean by Location

Income ($1000) Rural 33.69 Credit Balance ($) Rural 2856 Suburban 50.67 Suburban 4675 Urban 44.95 Urban 4148

Variability: Standard Deviation by Location
Income ($1000) Rural 7.79 Credit Balance ($) Rural 428 Suburban 15.26 Suburban 742 Urban 14.56 Urban 63

Interpretation
On this chart we compared the Income vs. the Credit Balances and noticed that there is a connection between the two variables. The higher the income the higher the credit balance is the trend, although…