### [solution] » Dear,you did the first part of the project (Part A) and its already attached if you need a

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The Question

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

This paper was answered on 14-Oct-2020

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