Case 1: Century National Bank Checking Account Customers

Century National Bank has offices in several cities in the Midwest and in the southeastern part of the U.S. Dr. Robert Lindhal, president and CEO, would like to know the characteristics of his checking account customers. He asked Ms. Sofia Kovalevskaya, Director of Planning, to select a sample of customers and prepare a report. Assume that you work in the Planning Department of the Century National Bank and that you report to Ms. Kovalevskaya. She has called a meeting to discuss this project and has selected you to head a team of three employees of the department to take a random sample of customers and prepare a report for Dr. Lindhal. At this meeting, it is determined that the sample size will be 60 customers from branches in Cincinnati, OH, Atlanta, GA, Louisville, KY and Erie, PA. The variables decided upon are account balance, number of ATM transactions in the past month, number of other bank services used in the past month, whether or not the customer uses a debit card, and whether or not the customer has an interest-bearing checking account. The data resulting from this random sample of 60 checking account customers is presented below and in the accompanying Excel file (See Fig. 1).
1. Prepare a histogram of all balances, regardless of branch location. Describe the distribution.

2. Determine the mean and median of all the balances. Why are these measures different?

3. Determine the standard deviation for the balances.

4. Construct a cumulative relative frequency polygon for the balances, so that the reader can glance and see the percentage of balances below any given balance amount. Suppose that in the past the bank has given an extra 1% interest bonus on end-of-month customer balances above $1,800.00, and charged a nominal fee for end-of-month balances below $600.00. What percentage of customers will receive a bonus and what will be charged a fee?

5. Decide whether a five number summary, or the mean and standard deviation better describe the data.

6. Prepare a box-and-whisker plot for all account balances.

7. Prepare side-by-side box-and-whisker plots of account balances for customers who have debit cards vs customers who do not have debit cards. What can you conclude from this?

8. Prepare side-by-side box-and-whisker plots of account balances for customers who receive interest on their checking accounts vs those who do not. What can you conclude from this?

9. Prepare side-by-side box-and-whisker plots for account balances for customers from each of the four locations, Cincinnati, Louisville, Eerie, and Atlanta. What can you conclude from this?

10. Prepare a scatter plot for the monthly account balances vs the number of ATM transactions used in the month. Explain the relationship and what this means.

Attempt to provide this information to Dr. Lindhal in a succinct, informative, and visually appealing way. Make sure to check spelling and grammar to avoid major mistakes. Organize the report well, using a formal and professional style.
Figure 1. Century National Bank Case Data.
X1=Account balance in $
X2=Number of ATM transactions in the month
X3=Number of other bank services used
X4=Has a debit card (1=Yes, 0 = No)
X5=Receives interest on the account (1=Yes, 0=No)
X6=City where banking is done (1=Cincinnati, OH, 2=Atlanta, GA, 3=Louisville, KY, 4=Erie, PA)

x1 x2 x3 x4 x5 x6
$1,756 13 4 1 1 2
$748 9 2 1 0 1
$1,501 10 1 1 0 1
$1,831 10 4 1 1 3
$1,622 14 6 1 1 4
$1,886 17 3 0 1 1
$740 6 3 0 0 3
$1,593 10 8 1 0 1
$1,169 6 4 0 0 4
$2,125 18 6 1 1 2
$1,554 12 6 1 0 3
$1,474 12 7 1 0 1
$1,913 6 5 1 1 1
$1,218 10 3 1 0 1
$1,006 12 4 0 0 1
$2,215 20 3 1 1 4
$137 7 2 0 0 3
$167 5 4 0 0 4
$343 7 2 0 0 1
$2,557 20 7 1 1 4
$2,276 15 4 1 1 3
$1,494 11 2 0 1 1
$2,144 17 3 0 1 3
$1,995 10 7 1 1 2
$1,053 8 4 1 0 3
$1,526 8 4 0 1 2
$1,120 8 6 1 0 3
$1,838 7 5 1 1 3
$1,746 11 2 0 1 2
$1,616 10 4 1 1 2
$1,958 6 2 1 1 2
$634 2 7 1 0 4
$580 4 1 0 0 1
$1,320 4 5 1 0 1
$1,675 6 7 1 0 2
$789 8 4 0 0 4
$1,735 12 7 0 1 3
$1,784 11 5 1 1 1
$1,326 16 8 0 0 3
$2,051 14 4 1 1 4
$1,044 7 5 1 0 1
$1,885 10 6 1 1 2
$1,790 11 4 0 1 3
$765 4 3 0 0 4
$1,645 6 9 0 1 4
$32 2 0 0 0 3
$1,266 11 7 0 0 4
$890 7 1 1 1 1
$2,204 14 5 0 1 2
$2,409 16 8 1 1 2
$1,338 14 4 1 0 2
$2,076 12 5 1 0 2
$1,708 13 3 1 1 1
$2,138 18 5 0 0 4
$2,375 12 4 0 1 2
$1,455 9 5 1 1 3
$1,487 8 4 1 0 4
$1,125 6 4 1 0 2
$1,989 12 3 0 1 2
$2,156 14 5 1 0 2

The rubric for this assignment is based on the following performance indicators:
1. Formats the report in a professional manner.
 (1 point) Report is to the point and informative.
 (1 point) Writing style is professional.
 (1 point) Report has visual appeal.
 (1 point) Report is organized.
 (2 points) Report is complete.
 (2 points) Report is correct.

2. Grammar and spelling do not detract from report.
 (1 point) Grammar is correctly used throughout the report.
 (1 point) Spelling is correctly used throughout the report.