Introduction

AJ DAVIS is a department store chain, which has many credit customers and wants to find out more information about these 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)

3. Size (Household size)

4. Years (the number of years that the customer has lived in the current location)
5. Credit balance (the customers current credit balance on the store’s credit card, in $ Dollars)
Individual variables a. Location Location | Frequency | Relative Frequency | Rural | 13 | 0.26 | Suburban | 15 | 0.3 | Urban | 22 | 0.44 | n= | 50 | 1 |

The table and the pie chart above, show the location of AJ Davis’ customers distributed in 3 areas: rural, suburban and urban. The majority of customers live in urban areas with 44% or 22 out of 50. Suburban areas with 30% or 15 out of 50 of customers are the second and rural areas have the least amount of customers with 26% or 13 out of 50. b. Income Variable Income ($1000) | | | | n=50 | | | | | | | | | | Mean= 43.74 | Std Dev=14.64 | | Q1=30 | Median=42 | | Min=21 | | Q3=55 | Mode=55 | | Max=67 | | Range=46 |

Based on the table and histogram, the range of customer’s income is $46,000, with the highest income at $67,000 and the lowest at $21,000. The mean (average) income of a customer is $43,740. The median income is $43,000. Because the median is less than the mean, distribution is skewed to the right. This means the bigger portion of customers have an income under the rest of customers. However, this difference is not much.

c. Credit balance

Variable Credit balance ($) | | | n=50 | | | | | | | | | | Mean=3970 | | Std Dev=932 | | Q1=3121 | Median=4070 | Min=1864 | | Q3=4742 | Mode=3890 | | Max=5678 | | Range=3814