Math 533: Applied Managerial StatisticsCourse Project ASubmitted to Professor HeardOnSunday, May 17, 2015Math 533 Course Project Part A

AJ Davis is a department store chain which has many credit customers and wants to discover more information about these customers. A trial of fifty (50) credit customers is selected with data collected on the five (5) variables.

The following report presents the detailed statistical analysis of the data collected from a sample of credit customers in the department chain store AJ DAVIS.

The 1st individual variable considered is Location. It is a categorical variable. The three subcategories are Suburban, Rural and Urban. This is a categorical variable, the measures of vital trend and graphic statistics has not been calculated for this variable. The frequency distribution and pie chart are given as follows:

Frequency Distribution:

LocationFrequency

Suburban15

Rural14

Urban21

From the frequency distribution and pie chart, it is evident that the maximum number of customers belongs to the urban category (42%), followed by those in the suburban category (30%). Only 28% of the customers belong to the rural category.

The 2nd individual variable considered is Size. It is a quantitative variable. The measures of central tendency, variation and other descriptive statistics have been calculated for this variable and are given as follows:

Descriptive Statistics:

Size

Mean4.50

Standard Error0.24595014

Median2

Mode1

Standard Deviation1.73988868

Sample Variance3.02048163

Kurtosis-0.7220986

Skewness0.57289598

Range5

Minimum1

Maximum8

Sum225

Count50

Frequency Distribution:

SizeFrequency

18

27

36

44

54

66

77

87

The mean household size of the customers is given as 3.42. The median of the data is 3 and the mode is 2. The standard deviation is given approximately as 1.74. Maximum number of customers has a household size of 2 as is evident from the frequency distribution and the bar graph.

The 3rd individual variable considered is Credit Balance. It is a quantitative variable. The measures of central tendency, variation and other descriptive statistics have been calculated for this variable and are given as follows:

Descriptive Statistics:

Credit Balance($)

Mean4153.00

Standard Error135.0159991

Median4076

Mode3554

Standard Deviation927.4940816

Sample Variance871411.2010

Kurtosis-0.741380067

Skewness-0.129506489

Range3714

Minimum2047

Maximum5861

Sum207673

Count50

Relative Frequency Distribution:

Credit Balance ($)FrequencyRelative Frequency

1500 - 200000.00

2000 - 250010.02

2500 - 300050.10

3000 - 350080.16

3500 - 400050.10

4000 - 4500150.30

4500 - 500050.10

5000 - 550070.14

5500 - 600040.08

The mean credit balance of the customers is given as $4153.00. The standard deviation is given approximately as 933.49. The credit balance of the customers is more or less normally distributed with the peak of the bell shaped distribution lying in the range $4000 - $4500. Thus, maximum number of customers has a credit balance within this range.

The relationship between the variables Income and Size is illustrated in the following scatter plot:

As is evident from the scatter plot, there is no definite relationship or association between the two variables. The points are haphazard and do not exhibit any specific pattern. In other words, there is no correlation among the variables Income and Size.

The relationship between the variables Income and Credit Balance is illustrated in the following scatter plot:

As is evident from the scatter plot, there is a clear and explicit relationship between the two variables. The variables Income and Credit Balance exhibit a linear positive relationship or correlation. If Income increases, Credit Balance also increases or vice versa.

The relationship between the variables Years and Credit Balance is illustrated in the following scatter plot:

As referenced in the scatter plot above, these two variables do not show any clear relationship. The points are unsystematic and do not exhibit any specific pattern. In other words, there is significant correlation among the variables Years and Credit Balance.

We can conclude that, though not all, but some of the variables like Income etc. are strongly unquestionable of the Credit Balance of the customers in this is particular department store.

_1367254188.xlsChart1

0.42

0.3

0.28

Location

Sheet1

Location

Urban42%

Suburban30%

Rural28%

To resize chart data range, drag lower right corner of range.