Case Analysis : Credit Customers Essay

1009 Words Mar 28th, 2016 null Page
INTRODUCTION In business field, there are many uncertain situations business owners and managers would face. In order to make a decision about their businesses, the managers need analyzed information, which could be provided by statistic method.
AJ Davis department store, a chain store, wants to analysis the credit customers so the sample data of 50 credit customers was collected. The manager at the store has speculated some information about credit customers. By using the sample data of 50 credit customers, along with hypothesis testing and confidence intervals, we could determine whether manager’s speculations are convincing. Also, this report provides the summarization on the four variables of interests; income, location, number of years lived in the current home, and credit balance.

OBJECTIVE
The manager at AJ Davis store has speculated about the credit customers as follows:
A. The average (mean) annual income is less than $50,000.
B. The true population proportion of customers who live in an urban area exceeds 40%.
C. The average (mean) number of years lived in the current home is less than 13 years.
D. The average (mean) credit balance for suburban customers is more than $4,300.
The sample data of 50 credit customers is used to make an inference about the averages and the proportion. To find evidence to support the manager’s belief in each case A-D, we perform the hypothesis test, and compute the confidence intervals and p-value. In hypothesis test, the…

Related Documents