Math 533

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Statistical Report
The Relationships between Location, Income, and Credit Balance for the customers of AJ Davis Department Store

Math 533

Course Project Part A
AJ DAVIS DEPARTMENT STORES

AJ Davis Department Store Customer Research
A. Brief Introduction
The department store AJ Davis would like to find out more information about their 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 – be careful with this)
3. SIZE (Household Size, meaning 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 card balance on the store's credit card, in $). This report presents the findings of three individual variables extensively which include location, income, and credit balance. We will also discuss three pairing of variables extensively which include: location and income, income and credit balance, as well as location and credit balance. These variables and pairings will give AJ Davis the most information about their customers. B. 1st Individual Variable is location:

Location is very important to AJ Davis because knowing where your customers come from is the basis for most of your research. From location you can draw a correlation with every variable.

Interpretation: From the pie chart we can conclude that most of the customers come from an urban location about 44%. The rural and suburban areas are roughly the same with the least being from a rural area. 30% of the stores customers are from a suburban area and 26% are from a rural area.

C. 2nd Individual Variable is Income:
Knowing the income of customers gives us an idea of what socio-economic group is shopping at the AJ Davis department store.

Descriptive Statistics: Income ($1000)

Variable Mean SE Mean StDev Variance Minimum Q1 Median Q3 Income ($1000) 43.74 2.07 14.64 214.32 21.00 30.00 43.00 55.00

N for
Variable Maximum Range Mode Mode
Income ($1000) 67.00 46.00 55 4

Interpretation:

Based on the above findings we can see that the average income is around $43,740. The most important data to look at is the range between quartile 1 of the boxplot to quartile 3. We can see that most of the customer’s income is between $30,000 to $55,000.

D. 3rd Individual Variable is Credit Balance:
Looking at the credit balance for the AJ Department Store’s customers is not only important in finding out customer information it is also important in showing how much debt the customers have.

Descriptive Statistics: Credit Balance($)

Variable Mean SE Mean StDev Variance Minimum Credit Balance($) 3970 132 932 868430 1864

N for Variable Q1 Median Q3 Maximum Range Mode Mode Credit Balance($) 3109 4090 4748 5678 3814 3890 2

Interpretation:
The average customer credit balance is $3,970 on the stores credit card. The histogram shows a normal distribution curve and the standard deviation shows that the balances are close.

E. 1st Pairing of Variables location and income:
Location is a qualitative variable and income is a quantitative variable that can show us where our customers live and how much they make.

Descriptive Statistics: Income ($1000)

Variable Location Percent CumPct Mean SE Mean StDev Variance Income ($1000) Rural 26 26 33.69 2.16 7.79 60.73 Suburban 30 56 50.67 3.94 15.26 232.81 Urban 44 100 44.95 3.10 14.56 211.85

Variable Location Minimum Q1 Median Q3 Maximum Range Mode Income ($1000) Rural 22.00...
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