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.