Summarize the customers profile by account balance

Reference no: EM132370474

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QUESTION 1

You are hired as a consultant by a new bank, Bank PQR. You are required to give an overview on the customers banking habits within a short period. You decided to randomly select 60 customers from the dataset of 120 customers (excel file as provided). Below are the variables that are applicable in your study:

X1 = Account balance in RM

X2 = Number of cash deposit made via the ATM machine

X3 = whether the customer has a debit card or not (1=yes, 0=no)

X4 = whether the customer receives interest on the account (1=yes, 0=no)

X5 = indicates the area in the Selangor where the ATM banking was done;

1=Taman Desa, 2=Taman Kepong, 3=Taman Jaya

(a) Identify the type of each variable (X1 to X5) and indicate whether it is qualitative or quantitative. If it is quantitative data, indicate whether it is discrete or continuous. State the level of measurement for all the variables.

(b) Summarize the customers’ profile by account balance, number of cash deposit made via the ATM and whether the customer receives interest on the account, separately. For each variable you must include the frequency distribution and the appropriate graph.

(c) Obtain the descriptive statistics for the number of cash deposit made via the ATM by the area where the banking was done. You must present three different descriptive statistics since there are 3 different areas mentioned in this sample.

(d) Write a report (between 250 and 350 words in length) to summarize the results from your analysis in part (b) and (c). The report should include interpretation of results, compare on the results, distribution of the data, the appropriate descriptive statistics and the conclusion.

Question 2

By using the same 60 data selected for Question 1, carry out the following correlation and regression analysis using the data on account balance and the number of cash deposit made through the ATM.

(a) Identify the independent and dependent variable in the analysis.

(b) Use Excel to generate a scatterplot of account balance and the number of cash deposits. Add a trend line in the scatter diagram. Explain the graph. Based on your scatter diagram, is it appropriate to fit a regression line in this case?

(c) Use Excel to generate a summary output for the regression analysis. From the summary output, construct the regression equation. Determine the overall significance of the regression model at 5% significance level. Interpret the value of the intercept and slope.

(d) Based on your analysis, do you think that the balance in one’s account is explained by the number of cash deposits that he/she makes? Explain your reasons. In your opinion, what other two factors will explain the amount in the account?

(e) Would you recommend using the regression equation given in part (c) to predict the account balanceof the customers? Explain your reasons. How reliable is this prediction?

Question 3

As a manager, you have now decided to carry out the study in a greater scale. The banking habits of 500 randomly selected customers have been summarized in the following contingency table:

Services used by customers	Male	Female	Total
Cash deposit made via the ATM machine	105	51	156
Other bank services used	55	63	118
Own a debit card	75	45	120
Receives interest on the account	46	60	106

Results of the same survey have also been classified according to the respondents’ age, producing the following contingency table:

Services used by customers	Age group			Total
Services used by customers	Baby Boomers	Generation X	Generation Y	Total
Cash deposit made via the ATM machine	55	51	50	156
Other bank services used	35	43	40	118
Own a debit card	55	35	30	120
Receives interest on the account	26	30	50	106

(a) Use Excel to obtain a 100% stacked column chart for the data from each table.

(b) What is the probability that a customer who uses the bank’s debit card is a female?

(d) What is the probability that a male customer uses the cash deposit through the ATM machine?

(e) Comment on any four significant features of the two stacked column charts. Use your probability calculation expertise to make some recommendations on the types of customers the bank should target to become more successful.

Question 4

By referring to the second excel data file (data Q4 grp assign), create a probability distribution for the number of bedrooms. Compute the mean and standard deviation of this distribution.

Attachment:- Group Assignment Data.rar

Reference no: EM132370474

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