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Course project – part A

I. Introduction.

AJ DAVIS is a department store chain, which has many credit customers and wants to find out more information about these customers. A sample of 50 credit customers is selected with data collected on the following five variables:

1. Location (Rural, Urban, Suburban)

2. Income (in $1,000’s)

3. Size (Household size)

4. Years (the number of years that the customer has lived in the current location)

5. Credit balance (the customers current credit balance on the store’s credit card, in $)

II. Individual variables.

1. Location

Tally for Discrete Variables: Location

Location Count Percent Rural 13 26.00

Suburban 15 30.00 Urban 22 44.00 N= 50

[pic]

Interpretation: Look at the table and the pie chart above, we can see the location of AJ Davis’ customers is distributed in 3 areas: rural, urban and suburban. The majority of customer live in urban areas with 44%. Suburban areas with 30% of customers are the second and rural areas have the least amount of customers with 26%.

2. Income.

Descriptive Statistics: Income ($1000)

Total

Variable Count Mean StDev Minimum Q1 Median Q3 Maximum

Income ($1000) 50 43.74 14.64 21.00 30.00 43.00 55.00 67.00

Variable Range

Income ($1000) 46.00

[pic]

Interpretation: Based on the table and histogram, we have some comments as follow.

The range of customer’s income is $46,000, with the highest income at $67,000 and the lowest at $21,000. The mean (average) income of a customer is $43,740. The median income is $43,000. Because the median is less than the mean, distribution is skewed to the right. This means the bigger portion of customers have an income under the rest of customers. However, this difference is not much.

3. Credit balance…...

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