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Exploratory Data Analysis: Applied Managerial Statistics

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Exploratory Data Analysis

Course Project
Part A

Subject: Applied Managerial Statistics

Faculty: Curtis Allen Brown

Submitted by: Christian Oji

Introduction

Exploratory Data Analysis (EDA):
Exploratory data analysis is an approach to analyze statistical data using a variety of techniques out of which many are graphical analyses. EDA is used to dissect the data and look for the hidden patterns and correlations. Some of the graphical methods include pie charts, bar graphs, histograms, frequency and relative frequency tables, box plot, scatter graph, stem-leaf diagram etc.
There are also quantitative measures of data which include central tendencies like mean and median, measure of dispersion like standard deviation, minimum and maximum …show more content…
Location
Location as a variable describes the number and percentage of credit customers residing in different areas from the sample of customers from AJ Davis Department Stores.
Location Number of Customers Percentage
Urban 21 42%
Suburban 15 30%
Rural 14 28%
Total 50 100%

The pie chart illustrates the number of customers living in urban, suburban and rural communities, at first glance it is clear that the majority resides in urban areas with a percentage of 42% followed by suburban with 30% and the least in rural areas with 28%.
2. Income
Income can be used as a variable to evaluate the number summary of the data.
Measurement of Variable Income ($1,000)
Mean 43.58
Standard Deviation 14.53
Minimum 21
Q1 (First Quartile) 30
Median 42
Q3 (Third Quartile) 55
Maximum 67
Range 46

From the data the central tendencies are determined as mean income of the credit customers being $43,580 and median income being $42,000. Since Mean>Median hence the distribution is said to be right-skewed or positively skewed. The income range of the sample is $46,000. It is also noteworthy that the maximum and minimum incomes belong to the people residing in urban …show more content…
This shows that there are outliers on both sides of the urban incomes. 3. Credit Balance
From the data the central tendencies are determined as mean credit balance of the customers being $3,966 and median credit balance being $4,048. Since Mean<Median hence the distribution is said to be left-skewed or negatively skewed. The credit balance range of the sample is $3,814 with maximum credit being $5,678 and minimum being $1,864. A numerous portion of credit falls around $4,000 as can be observed on the normal distribution curve. The average credit balance of the customers residing in rural area is $2,928 that of suburban area is $4,665 and that of urban area is $4,159.
Measurement of Variable Credit Balance ($)
Mean

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