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Statistics for Business Decision Assignment

Added on - 28 Dec 2019

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STATISTICS BUSINESS DECISION
TABLE OF CONTENTINTRODUCTION.......................................................................................................................................................................................3TASK 1........................................................................................................................................................................................................31 Descriptive statistics.............................................................................................................................................................................32 Regression analysis...............................................................................................................................................................................43 Regression equation for both independent and dependent variable...................................................................................................114 Predicted charge in case household size is three person with annual income level of $40000..........................................................115 Addition of variables..........................................................................................................................................................................11TASK 2......................................................................................................................................................................................................12Activity 01.............................................................................................................................................................................................12Activity 02.............................................................................................................................................................................................12Activity 03.............................................................................................................................................................................................23CONCLUSION..........................................................................................................................................................................................29
INTRODUCTIONCredit card business is heavily affected by income level of people and household size. In the current report impact of incomeand household size on amount charged is identified. In order to identify relationship among the variables regression analysis will bedone and descriptive analysis tools will be applied on data set in order to obtain overview of data. In second part of the reportcorrelation tool is applied on the data set that is related to marks that are gained by students. On the basis of overall results entireconclusion is formed.TASK 11 Descriptive statisticsTable1Descriptive statistics tableIncome ($1000s)Household SizeAmount Charged ($)Mean4Mean3Mean3963Standard ErrorStandard Error0.2Standard Error132Median42Median3Median4090Mode54Mode2Mode3890Standard Deviation14StandardDeviation2Standard Deviation933Sample Variance211Sample Variance3Sample Variance871508Kurtosis-1Kurtosis-0.72Kurtosis-0.74Skewness0.09Skewness0.52Skewness-0.12Range46Range6Range3814Minimum21Minimum1Minimum1864Maximum67Maximum7Maximum5678Sum2174Sum171Sum198193Count50Count50Count50
InterpretationMean value of income in terms of thousand dollar is 43.78 followed by mean value of 3.42 for household size and amountcharged mean value is 3963.86. This is clearly reflecting that on average basis houses are earning 43.48 thousand dollars and therefamily size is 3 which means that in family there are three members. Mean value of amount charged is 3963.86. This means thathouseholds are charging amount of $3963. Mode value of household earning is 54 and this is reflecting that there are number ofpeople whose earning is equal to $54,000 followed by mode value of household is 2 and this is indicating that there are number ofhouses whose family size is 2 members. Mode value of amount charged is $3890 which revealed that equal to this value number oftimes amount is charged by households. Income level is deviating at small rate in comparison to amount charged. This means thatpeople are charging more money relative to income level. This means that people are making wide level of use of credit cards. Rate ofdeviation in household size is 1.72. Gap between minimum and maximum value is reflected by range and this reflects that gap inminimum and maximum value increased at rapid rate in case of amount charged relative to income level. Hence, overall conclusioncan be formed that people frequency to charge amount is more than growth rate of income.2 Regression analysisH0: There is no significant mean difference between income level, household size and amount charged.H1: There is significant mean difference between income level, household size and amount charged.Regression StatisticsMultiple R0.908501824R Square0.825375565Adjusted R Square0.817944738Standard Error398.3249315Observations50dfSSMSFSignificance FRegression23524677917623389111.07451.54692E-18
Residual477457149158662.8Total4942703928CoefficientsStandardErrort StatP-valueLower 95%Upper95%Lower95.0%Upper95.0%Intercept1305.033885197.7716.5987123.32E-08907.16997581702.898907.171702.897794Income($1000s)33.121955393.9702378.3425637.89E-1125.1348678741.1090425.1348741.1090429HouseholdSize356.340203233.220410.726553.17E-14289.509379423.171289.5094423.1710273ObservationPredicted Amount Charged($)Residuals14162.640085-146.6423011.372953147.62733790.297271309.70344742.83267-0.8326753044.494908-1180.4963839.421838230.578272886.886437-155.88683342.5925075.40749394916.443753-152.444104063.27421946.72578113202.1033791005.897124320.248556-101.249132555.666884-78.6669143110.738819-596.739154526.981595-312.982164817.077887147.9221
174834.19723-422.197182713.275354-265.275193118.740125-123.74204312.24725-141.247215496.636338181.3637223069.615558553.3844235621.122853-320.123243408.836418-388.836255157.415478-329.415265231.660695341.3393272655.03275-72.0327283607.56815258.4319294212.881384-626.881304949.56570987.43429313673.812061-68.8121325305.90591239.09409335264.78265105.2173343740.055971149.944354427.615728277.3843364137.51943619.48056373102.737513476.2625383690.931404199.0686393309.470551-337.471402820.642527300.3575414022.150958160.849424162.640085-442.64434204.880078-77.8801442912.0070878.992913454660.586147-57.5861464038.15357234.8464473011.37295355.62705
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