Math 533 Essay

658 WordsApr 15, 20133 Pages
A. Introduction The analysis of customer data will provide AJ Davis with additional insight into their customer demographic information. Through Pat A of this project I have analyzed the single variables of location, income and credit balance. I have also compared the following three pairs of variables: location vs. income, income vs. credit balance, and household size vs. years in residence. Although not all comparisons provide significant findings, the analysis does provide additional insight into which AJ Davis Department Stores customers are and can be used to help guide AJ Davis when making strategic decisions and support or disprove theories. B. 1st Individual Variable - Location The majority of AJ Davis customers in the data set (44%) live in urban areas. The remaining customers from the data set are closely split between suburban and rural areas, respectively 30% and 26%. C. 2nd Individual Variable – Income Five Number Summary for Customer Income Minimum = $21,000 Q1: Midpoint of lower half of data set = $30,000 Median: Midpoint of entire data set. ($42,000 + $44,000)/2 = $43,000 Q3: Midpoint of upper half of data set = $55,000 Maximum = $67,000 Review of the five number summary information shows that the incomes range for AJ Davis customers is vast. When considering the customers represented, AJ would be considering customers from low income through middle class and the variety of disposable income that can be expected from each. D. 3rd Individual Variable - Credit Balance Five Number Summary for Customer Credit Balances Minimum = $1,864 Q1: Midpoint of lower half of data set = $3,121 Median: Midpoint of entire data set. ($4,070 + $4,110)/2= $4,090 Q3: Midpoint of upper half of data set = $4,742 Maximum = $5,678 It’s interesting that the median credit balance amount straddles the $4,000 mark,

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