Introduction
AJ Davis, a large department store chain, is trying to gather more information about their credit customers. A sample of 50 credit customers were selected based on five variables which include location (rural, urban, suburban), income (in $1000s), size (household size), years (number of years at current location), and credit balance (the current balance on the store’s credit card, in $s).
Variable One – Location
The location variable takes a look at where the customers reside and has three subcategories, which includes rural, urban, and suburban. A pie chart, like the one shown above, is a circular graph that divides the information into segments based on numerical values.
A frequency distribution table allows us to look at …show more content…
Suburban areas are second with 30% (15/50=.30), and rural areas have the least amount of customers with 28% (14/50=.28).

Variable Two – Credit Balance
The credit balance is the monetary amount that is currently charged to the credit card. Since the credit balance is a quantitative variable, we can actually get an exact numerical value.
Descriptive Statistics: CREDIT BALANCE($)
Variable N N* Mean SE Mean StDev Variance Minimum Q1
CREDIT BALANCE($) 50 0 3966 132 936 876832 1864 3109
Variable Median Q3 Maximum Skewness
CREDIT BALANCE($) 4048 4778 5678 -0.13

A histogram is a graph of frequency distribution using rectangular bars.
Relative frequency shows the relative frequency of a class divided by the total number of frequencies of the class.
Relative Frequency Distribution
Credit Balance ($) Frequency Relative
2000 1 1/50= 0.02 = 2%
2500 5 5/50= 0.1 = 10%
3000 8 8/50= 0.16 = 16%
3500 6 6/50= 0.12 = 12%
4000 12 12/50= 0.24 = …show more content…
The standard deviation is 936. The histogram, shown above, displays an increase in credit balances around $4000. The relative frequency distribution chart indicates that 24% of cardholders carry an approximate balance of around $4000.

Variable Three – Household Size
This variable looks at the number of people who live in the household.
Descriptive Statistics: SIZE
Variable N N* Mean SE Mean StDev Variance Minimum Q1 Median
SIZE 50 0 3.420 0.246 1.739 3.024 1.000 2.000 3.000 N for
Variable Q3 Maximum Range Mode Mode Skewness
SIZE 5.000 7.000 6.000 2 15 0.53 Frequency Distribution of Household Size
Size of Household Frequency
1 – 5
2 – 15
3 –