Project Part C
Project Part C
Summary Report
Management at the A. J. Davis company wishes the business to retain a competitive edge in the marketplace; ergo, they had statistical data collected regarding a selection of their customers who carry credit with the corporation. Based upon studies conducted on this data, it can be stated with a high degree of confidence that relationships do exist between certain discreet portions of the information gathered.
Household Size vs. Credit Balances
Predictably, the data bears out the fact that customers‟ household size does have a correlation with the size of their allowable credit balances at A. J. Davis: The greater the number of persons in the household, the strong positive trend shows that there is a high degree of likelihood that their credit balance will be higher, relative to a smaller-sized household. The trend is strong enough for Management to be able to utilize the data in an X/Y-axis layout to reveal a clearly positive line, showing correlation between growth in customer family size and respective credit.
Graham 2
Income, Size, and Years
Unfortunately, as Part A of this project already bore out, just because trends can be gleaned from one comparison of data sets does not mean this will always hold true. It was A. J. Davis‟ goal to, as a company, first and foremost study their credit customers, hence the data collection in the first place. Ergo, credit balance was in many ways the central hub of this investigation, with the other aspects (income, years of residency, family size, location, etc.) being rather like spokes in this wheel of prediction we call statistical analysis.
Thus, in testing the data present, it is clear that both the income and family size of clients form strongly positive trends in being able to act in future uses as good predictive values that A. J. Davis can thereby use to its advantage. This did not hold true, though, of the third parameter focused ultimately on: years of residency in one
Summary Report
Management at the A. J. Davis company wishes the business to retain a competitive edge in the marketplace; ergo, they had statistical data collected regarding a selection of their customers who carry credit with the corporation. Based upon studies conducted on this data, it can be stated with a high degree of confidence that relationships do exist between certain discreet portions of the information gathered.
Household Size vs. Credit Balances
Predictably, the data bears out the fact that customers‟ household size does have a correlation with the size of their allowable credit balances at A. J. Davis: The greater the number of persons in the household, the strong positive trend shows that there is a high degree of likelihood that their credit balance will be higher, relative to a smaller-sized household. The trend is strong enough for Management to be able to utilize the data in an X/Y-axis layout to reveal a clearly positive line, showing correlation between growth in customer family size and respective credit.
Graham 2
Income, Size, and Years
Unfortunately, as Part A of this project already bore out, just because trends can be gleaned from one comparison of data sets does not mean this will always hold true. It was A. J. Davis‟ goal to, as a company, first and foremost study their credit customers, hence the data collection in the first place. Ergo, credit balance was in many ways the central hub of this investigation, with the other aspects (income, years of residency, family size, location, etc.) being rather like spokes in this wheel of prediction we call statistical analysis.
Thus, in testing the data present, it is clear that both the income and family size of clients form strongly positive trends in being able to act in future uses as good predictive values that A. J. Davis can thereby use to its advantage. This did not hold true, though, of the third parameter focused ultimately on: years of residency in one
Bibliography: McClave, J. T., Benson, G. P., Sincich, T. (2011). Statistics for business and economics (11th ed.). Boston MA: Pearson & Prentice Hall.