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you did the first part of the project (Part A) and its already attached if you need a


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Dear,

you did the first part of the project (Part A) and its already attached if you need any data, but now can you do the second part ( Part B) ?

Part B as below 


Project Part B: Hypothesis Testing and ConfidenceIntervals

Your manager has speculated the following.a. The average (mean) annual income was greater than $45,000.b. The true population proportion of customers who live in a suburban area is less than 45%.c. The average (mean) number of years lived in the current home is greater than 8 years.d. The average (mean) credit balance for rural customers is less than $3,200.1. Using the sample data, perform the hypothesis test for each of the above situations inorder to see if there is evidence to support your manager?s belief in each case A?D. Ineach case, use the Seven Elements of a Test of Hypothesis in Section 6.2 of your textbook with ? = .05, and explain your conclusion in simple terms. Also, be sure to computethe p-value and interpret.2. Follow this up with computing 95% confidence intervals for each of the variablesdescribed in A?D, and again interpreting these intervals.3. Write a report to your manager about the results, distilling down the results in a way thatwould be understandable to someone who does not know statistics. Clear explanationsand interpretations are critical.4. All DeVry University policies are in effect, including the plagiarism policy.5. Project Part B report is due by the end of Week 6.6. Project Part B is worth 100 total points. See the grading rubric below.Submission: The report from Part 3 and all of the relevant work done in the hypothesis testing(including MINITAB) in 1 and the confidence intervals (MINITAB) in Part 2 as an appendixFormat for report:A. Summary report (about one paragraph on each of the speculations, A?D)B. Appendix with all of the steps in hypothesis testing (the format of the Seven Elements ofa Test of Hypothesis, in Section 6.2 of your text book) for each speculation A?D, as wellas the confidence intervals, including all MINITAB output


ocation Income ($1,000) Size Years Credit Balance($)
Urban 27 1 2 2,631
Rural 25 4 2 2,047
Suburban 25 1 1 3,155
Suburban 26 1 2 3,913
Rural 30 5 5 2,660
Urban 29 1 3 3,531
Rural 33 6 10 2,766
Urban 30 1 4 3,769
Suburban 32 2 4 4,082
Urban 34 1 6 3,806
Urban 35 1 8 4,049
Urban 40 1 9 4,073
Rural 30 6 9 2,697
Rural 33 6 11 2,914
Urban 42 2 10 4,073
Suburban 32 2 4 4,310
Urban 43 2 10 4,199
Urban 43 2 10 4,253
Rural 33 7 13 3,104
Urban 47 2 10 4,293
Suburban 35 3 5 4,456
Urban 54 2 11 4,340
Suburban 42 3 5 4,925
Rural 36 7 13 3,178
Urban 57 3 11 4,391
Suburban 44 3 6 4,947
Rural 38 7 15 3,203
Urban 54 3 8 4,354
Urban 54 3 10 4,366
Suburban 46 4 6 5,003
Rural 40 7 15 3,250
Urban 60 4 11 4,402
Urban 58 4 10 4,397
Urban 61 5 13 4,595
Urban 61 5 13 4,786
Urban 62 6 14 4,888
Suburban 49 5 8 5,148
Urban 68 6 14 5,011
Suburban 57 6 8 5,220
Rural 45 8 16 3,257
Urban 71 7 15 5,528
Suburban 57 7 9 5,283
Suburban 64 8 9 5,332
Rural 45 8 17 3,304
Urban 74 7 19 5,553
Suburban 65 8 10 5,484
Rural 47 8 18 3,342
Rural 53 8 18 3,788
Suburban 66 8 10 5,756
Suburban 69 8 10

5,861


Running head: INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS

 

DEPARTMENT OF STORE CHAIN DeVry University

 

Math-533

 

Professor Thomas Brantle

 

Course Project Part A: Exploratory Data Analysis

 

AJ DAVIS Analysis

 

Date 9/8/2016

 

Anas Alsalahat INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN A. Introduction

 

Customer information is an important tool in any business entity. It not only helps to

 

establish buying trends of customers but also aids in making cognisant decisions on customer

 

tastes and preferences on specific products. AJ DAVIS a department of store chain was

 

interested on customer information particularly on the locality of the customer, rural, urban or

 

suburban, customer income in $1,000's, customer household size (number of people living in

 

the household), the number of years the customer has lived the current location and finally

 

the customer?s credit card balance on the store's credit card. In order to carry out this analysis,

 

the department selected a sample of 50 credit customers and obtained data on the variables

 

mentioned above.

 

This paper will apply a statistical analysis on each of the variables mentioned above to

 

establish the customer?s likely trend and also if there is any significant relationship between

 

the variables when paired. INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN B: Analysis on location of customers

 

Location of customers is important as the department may use information on location of

 

their customers to know regions where their products are performing better or poorly. The

 

table below gives summary of the location of customers.

 

Location Number of customers Urban 21 Rural 15 Suburban 14 Total

 

Table 1: Analysis of location of customers 50 From the table above, this information is put on pie chart to give easier comparison. Suburban; 28%

 

Urban; 42% Rural; 30% Fig. 1: Analysis of location of customers as an individual variable Urban

 

Rural

 

Suburban INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

The pie chart shows that most customers are from urban setup (42%), followed by customers

 

from rural setup then lastly customers from suburban region are fewest (28%).

 

C: Analysis of customers on their income (in $1,000's)

 

Information on customer?s income is vital in deciding the correct pricing of the department?s

 

products. This will help to evaluate the current price for the products and decide whether

 

there is need to revise the prices. The table below shows customer income in $1,000's

 

Table 2: Analysis of customers on their income ($1000s)

 

Income ($1000s) Number of customers 25 - 29

 

30 - 34

 

35 - 39

 

40 - 44

 

45 - 49

 

50 - 54

 

55 ? 59

 

60 ? 64

 

65 ? 69

 

70 - 74 5

 

9

 

4

 

7

 

6

 

4

 

4

 

5

 

4

 

2 The bar chart plot for the data relating customers? income is shown below. INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

10

 

9

 

8

 

7

 

6

 

Number of customers 5

 

4

 

3

 

2

 

1

 

0 25-29 30-34 35 -39 40 - 44 45 - 49 50 - 54 55-59 60 - 64 65 - 69 70 - 74

 

Income ($1000s) Fig. 2: Analysis of customers? income ($1000s) as an individual variable

 

From the bar graph, majority of customers earn between $30, 000 to $ 34,000 and those

 

customers earning between $ 70, 000 to $74,000 are less. The data for customers? income has

 

the following descriptive statistics:

 

i.

 

ii.

 

iii.

 

iv.

 

v. The minimum income is $25,000

 

The first quartile for the customers? income is $33, 000

 

The mean income is $44,500

 

The upper quartile is $ 57,000

 

The maximum income is $74, 000 D: Analysis of customer?s household size INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

This tool of analysis based on customer?s household size is helpful in determining number of

 

people that can directly use the products from AJ DAVIS and even predict determine the

 

market size for the products. The table below shows customer household sizes.

 

Table 3: customers? household size

 

Customer?s household size Number of customers One person 8 Two people 7 Three people 6 Four people 4 Five people 4 Six people 6 Seven people 7 Eight people 8 The chart below shows how the customer?s household size is distributed on a bar chart plot. INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

9

 

8

 

7

 

6

 

5 Number of customers 4

 

3

 

2

 

1

 

0 customer's household size Fig. 3: Analysis of customer?s household size as an individual variable

 

The data for customers? household size has the following descriptive statistics:

 

i.

 

ii.

 

iii.

 

iv.

 

v. The minimum household size is one person

 

The first quartile for the customers? household size is two people

 

The median household size is approximately 5 people

 

The upper quartile of the household size is seven people

 

The maximum household is eight people E: Analysis of paired variables of location and income INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

Pairing location and income for customers will help AJ DAVIS predict which location

 

contributes to their income and therefore target the location for market expansion and product

 

promotion. A location with customers of high income indicates that there is a strong purchase

 

force from that location. The table below shows location and income of customers sampled.

 

Table 4: Location and income of customers

 

Income ($1000s) Number of customers in Urban setup Suburban setup Rural setup 25 - 29 2 2 1 30 - 34 2 2 5 35 - 39 1 1 2 40 - 44 4 2 1 45 - 49 1 2 3 50 - 54 3 0 1 55 ? 59 2 2 0 60 ? 64 4 1 0 65 ? 69 1 3 0 70 - 74 2 0 0 The bar chart below shows the analysis of customer?s location and income. INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

6 5 4

 

Number of customers in Urban setup Number of customers per location Number of customers in Suburban setup 3 2

 

Number of customers in Rural setup 1 0 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 ? 59 60 ? 64 65 ? 69 70 - 74

 

Customer's income (in $1000s) Fig. 4: Analysis of customer's income for the three locations Urban, suburban and rural

 

locations as paired variables

 

From the bar chart, the income of customers from an urban location is steady throughout with

 

only customers from urban location having the maximum income which is $70, 000 to

 

$74,000. Most customers from rural location have an income between $ 30,000 and $34,000

 

while customers from suburban location tend to have nearly equal representation in all levels

 

of income which predicts average lifestyle.

 

F: Analysis of paired variables of location and size of customers? household INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

When pairing location and household size for customers, it helps the store chain department

 

to conceptualise which location has the highest household size hence more consumers from

 

that location. This will help the department to decide on the number of products to be

 

supplied to a particular location. The table below shows location of customers and their

 

household size.

 

Table 5: Location and size of customers? household Size of customer?s household Number of customers per location One person Urban

 

6 Suburban

 

2 Rural

 

0 Two people 4 2 0 Three people 3 3 0 Four people 2 1 1 Five people 2 1 1 Six people 2 0 3 Seven people 2 1 4 Eight people 0 4 4 The chart below shows an analysis of customer?s location and size of customer?s household INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

7 6 5 4

 

Number of customers in Urban Number of customers in Suburban Number of customers in Rural 3 2 1 0 One person Two people Three people Four people Five people Six people Seven people Eight people Fig. 5: Analysis of location and size of customers? household as paired variables

 

From the chart, it is clear that the size of customer?s household in rural location increases

 

from four people to a maximum of eight people, the minimum household size being four

 

people. While in the urban location, the size of customer?s household concentrates at one

 

person with only two customers having a household size of seven people. INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

G: Analysis of paired variables of location and the number years the customer has lived

 

in the current location

 

Analysing the number of years the customer has lived in the current location will assist the

 

store chain department to evaluate the relationship they have with their customers as either

 

long term or short term. This will in turn build confidence in the department if the

 

relationship is long term. The table below shows the location of customers and the number of

 

years the customer has stayed the current location.

 

Table 6: Location and number of years of stay of customers in the current location

 

Number of years Number of customers in of stay

 

Urban setup Suburban setup Rural setup 1-4 3 4 1 5-9 4 8 2 10 - 14 13 3 4 15 - 19 2 0 6 The chart below shows the relationship between location of customers and the number of

 

years they have stayed in the current location. INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

14 12 10

 

Number of customers in Urban setup Number of customers in Suburban setup 8

 

Number of customers

 

6 4

 

Number of customers in Rural setup

 

2 0 1 - 4years 5 - 9 years 10 - 14 years 15 - 19 years Number of years of customer stay in current location Fig. 6: Analysis of location and number of years of stay of customers in the current location

 

as paired variables

 

From the chart the number of customers that have lived in urban location from three

 

customers to a maximum of thirteen customers who have lived in urban location between 10

 

and 14 years. No customers have lived in suburban location beyond 14 years. Majority of

 

customers in rural location have lived in the location between 15 and 19 years. INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

H: Conclusion

 

The trends obtained in the analysis of the variables either as individual variables or paired

 

variables are important in determining the market trend for the products from AJ DAVIS

 

department of store chain. This is used as tool for decision making that affect production and

 

supply of the product as well as establish customer relations and improve it for the better

 

performance. INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

Appendix 1: Obtained data from the 50 selected sample

 

Location

 

Urban

 

Rural

 

Suburban

 

Suburban

 

Rural

 

Urban

 

Rural

 

Urban

 

Suburban

 

Urban

 

Urban

 

Urban

 

Rural

 

Rural

 

Urban

 

Suburban

 

Urban

 

Urban

 

Rural

 

Urban

 

Suburban

 

Urban

 

Suburban

 

Rural

 

Urban

 

Suburban

 

Rural

 

Urban

 

Urban

 

Suburban

 

Rural

 

Urban

 

Urban

 

Urban

 

Urban

 

Urban

 

Suburban

 

Urban

 

Suburban

 

Rural

 

Urban

 

Suburban

 

Suburban

 

Rural

 

Urban

 

Suburban

 

Rural Income ($1,000)

 

27

 

25

 

25

 

26

 

30

 

29

 

33

 

30

 

32

 

34

 

35

 

40

 

30

 

33

 

42

 

32

 

43

 

43

 

33

 

47

 

35

 

54

 

42

 

36

 

57

 

44

 

38

 

54

 

54

 

46

 

40

 

60

 

58

 

61

 

61

 

62

 

49

 

68

 

57

 

45

 

71

 

57

 

64

 

45

 

74

 

65

 

47 Size

 

1

 

4

 

1

 

1

 

5

 

1

 

6

 

1

 

2

 

1

 

1

 

1

 

6

 

6

 

2

 

2

 

2

 

2

 

7

 

2

 

3

 

2

 

3

 

7

 

3

 

3

 

7

 

3

 

3

 

4

 

7

 

4

 

4

 

5

 

5

 

6

 

5

 

6

 

6

 

8

 

7

 

7

 

8

 

8

 

7

 

8

 

8 Years

 

2

 

2

 

1

 

2

 

5

 

3

 

10

 

4

 

4

 

6

 

8

 

9

 

9

 

11

 

10

 

4

 

10

 

10

 

13

 

10

 

5

 

11

 

5

 

13

 

11

 

6

 

15

 

8

 

10

 

6

 

15

 

11

 

10

 

13

 

13

 

14

 

8

 

14

 

8

 

16

 

15

 

9

 

9

 

17

 

19

 

10

 

18 Credit Balance($)

 

2,631

 

2,047

 

3,155

 

3,913

 

2,660

 

3,531

 

2,766

 

3,769

 

4,082

 

3,806

 

4,049

 

4,073

 

2,697

 

2,914

 

4,073

 

4,310

 

4,199

 

4,253

 

3,104

 

4,293

 

4,456

 

4,340

 

4,925

 

3,178

 

4,391

 

4,947

 

3,203

 

4,354

 

4,366

 

5,003

 

3,250

 

4,402

 

4,397

 

4,595

 

4,786

 

4,888

 

5,148

 

5,011

 

5,220

 

3,257

 

5,528

 

5,283

 

5,332

 

3,304

 

5,553

 

5,484

 

3,342 INVESTIGATING CUSTOMER INFORMATION IN AJ DAVIS DEPARTMENT OF

 

STORE CHAIN

 

Rural

 

Suburban

 

Suburban 53

 

66

 

69 8

 

8

 

8 18

 

10

 

10 3,788

 

5,756

 

5,861

 


Solution details

Solution #000176187

[solution] »

Dear,

you did the first part of the project (Part A) and its already attached if you need a.zip

Uploaded by: Tutor

Answer rating:

This paper was answered on 14-Oct-2020

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