| Course Project: AJ DAVIS DEPARTMENT STORES | | | | |

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This is a report presenting detailed statistical analysis of the data collected from a sample of fifty credit customers in the department chain store AJ DAVIS. Data was collected on five variables, which were location, income, size, years at current location and credit balance. The first variable analyzed was that of Location. The location data is a categorical variable. Which was further broken down into three subcategories? These subcategories are Urban, Suburban and Rural. A frequency distribution and pie chart are given as follows:

Frequency Distribution: | Location | Frequency | Urban | 21 | Suburban | 15 | Rural | 14 |

The pie chart and frequency distribution, proves that the largest number of customers are those in the rural category (42%), followed by those in the suburban category (30%). There are only 28% of the customers falling into the urban category. The next variable analyzed was Size. It is a quantitative variable. Central tendency, variation and a bar graph were calculated for the Size variable. The mean household size of the customers is 3.42. And the median of the data collected is 3, the mode is 2. The standard deviation is rounded to the nearest one hundredth and is 1.74. Upon reviewing the frequency distribution chart and the bar graph, the largest number of customer household size is 2. Size | Mean | 3.42 | Median | 3 | Mode | 2 | Standard Deviation | 1.73898868 | Sample Variance | 3.02408163 | Range | 6 |

Frequency Distribution: | Size | Frequency | 1 | 5 | 2 | 15 | 3 | 8 | 4 | 9 | 5 | 5 | 6 | 5 | 7 | 3 |

Credit Balance was the next variable listed and analyzed. This is a quantitative variable. Central tendency, variation and a bar graph were also calculated for the Credit Balance variable. The mean credit balance of the customers was $3964.06. The standard deviation, rounded to the nearest hundredth, is 933.49. Descriptive Statistics: | Credit Balances | Mean | 3964.06 | Median | 4090 | Mode | 3890 | Standard Deviation | 933.4940816 | Range | 3814 |

Relative Frequency Distribution: | Credit Balance ($) | Frequency | Relative Frequency | 1500 - 2000 | 1 | 0.02 | 2000 - 2500 | 2 | 0.04 | 2500 - 3000 | 6 | 0.12 | 3000 - 3500 | 6 | 0.12 | 3500 - 4000 | 8 | 0.16 | 4000 - 4500 | 12 | 0.24 | 4500 - 5000 | 7 | 0.14 | 5000 - 5500 | 6 | 0.12 | 5500 - 6000 | 2 | 0.04 |

A scatter plot was used to illustrate the relationship between the Income and Size variable following:

There is no definite relationship or association between income and household size.
The next relationship analyzed is between the Income and Credit Balance in the following scatter plot:

In this scatter plot there is a definite relationship between the Income and Credit Balances. This relationship illustrates that Income and Credit Balance have a linear positive relationship. This means that as Income increases, the Credit Balance also increases. The relationship between Years at current resident location and Credit Balances is demonstrated in the following scatter plot:

The Years of current residency and customers’ Credit Balances do not show any clear relationship.
In conclusion I found that some of the variables like Income, and household Sizes are strong influences of the Credit Balances of customers of AJ Davis department store.