Math 533: Applied Managerial Statistics

Course Project A

Submitted to
Professor Heard

On

Sunday, May 17, 2015

Math 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:
Location
Frequency
Suburban
15
Rural
14
Urban
21

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
Mean
4.50
0.245950
Standard Error
14
Median
2
Mode
1
Standard
1.739888
Deviation
68
Sample
3.020481
Variance
63
0.722098
Kurtosis
6
0.572895
Skewness
98
Range
5
Minimum
1
Maximum
8
Sum
225
Count
50
Frequency Distribution:
Size
Frequency
1
8
2
7
3
6
4
4
5
4
6
6
7
7
8
7

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($)
Mean
4153.00
Standard Error
135.0159991
Median
4076
Mode
3554
Standard Deviation
927.4940816
Sample Variance
871411.2010
Kurtosis
-0.741380067
Skewness
-0.129506489
Range
3714
Minimum
2047
Maximum
5861
Sum
207673
Count
50

Relative Frequency Distribution:

Credit Balance
Frequenc
Relative
($)
y
Frequency
1500 - 2000
0
0.00
2000 - 2500
1
0.02
2500 - 3000
5
0.10
3000 - 3500
8
0.16
3500 - 4000
5
0.10
4000 - 4500
15
0.30
4500 - 5000
5
0.10
5000 - 5500
7
0.14
5500 - 6000
4
0.08

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.