sbe9_cp02
TRANSCRIPT
Solutions to Case Problems
Chapter 2Descriptive Statistics: Tabular and Graphical Presentations
Case Problem: Pelican Stores
1. Because there are 100 observations in the sample, the frequency and percent frequency distribution are the same. Percent frequency distributions for many of the variables are given.
Method of Payment Percent Frequency
American Express 2Discover 4MasterCard 14Proprietary Card 70Visa 10
Total: 100
No. of Items Percent Frequency
1 292 273 104 105 96 7
7 or more 8Total: 100
Discount Percent Frequency
0.00 - 29.99 7430.00 - 59.99 1860.00 - 89.99 390.00 - 119.99 3120.00 - 149.99 1150.00 - 179.99 1
Total: 100
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Chapter 2 Descriptive Statistics: Tabular and Graphical Methods
Sales Percent Frequency
0.00 - 29.99 1330.00 - 59.99 3860.00 - 89.99 2090.00 - 119.99 13120.00 - 149.99 6150.00 - 179.99 4
Over 180 6Total: 100
Age Percent Frequency
20 - 29 1030 - 39 3040 - 49 3350 - 59 1660 - 69 770 - 79 4
Total: 100
Gender Percent Frequency
Female 93Male 7
Total: 100
Martial Status Percent Frequency
Married 84Single 16
Total: 100
These percent frequency distributions provide a profile of Pelican's customers. Many observations are possible. Here are a few:
A large majority of the customers use Pelican's proprietary credit card. Over half of the customers purchase 1 or 2 items, but a few make numerous purchases. The percent frequency distribution of sales shows that almost half (49%) of the customers
spend $60 or more. Customers are distributed across all adult age groups. The overwhelming majority of customers are female. Most of the customers are married.
2. The data show that 70% of the customers received a discount and 30% did not. So we assume that 70% of the 100 purchases were attributable to the promotional campaign. A bar graph or pie chart showing a 70%/30% split could be constructed.
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Chapter 2 Descriptive Statistics: Tabular and Graphical Methods
3. A crosstabulation of type of customer and sales is shown. The discount category of "No" corresponds to the regular customers and the discount category of "Yes" corresponds to the customers responding to the promotional campaign.
SalesDiscount 0-30 30-60 60-90 90-120 120-150 150-180 180-210 210-240 240-270 270-300 TotalYes 8 24 14 11 4 3 2 1 2 1 70No 5 14 6 2 2 1 30Total 13 38 20 13 6 4 2 1 2 1 100
From the crosstabulation it appears that the larger sales were made to customers responding to the promotional campaign.
4. Shown below is a scatter diagram of sales versus discount for the 70 customers who received a discount. A trendline has been fitted to the data. It is clear that discount amount and sales are positively related.
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Chapter 2 Descriptive Statistics: Tabular and Graphical Methods
5. A scatterdiagram of Sales vs. Age is shown below. A trendline has been fitted to the data. From this,
it appears that there is no relationship between sales and age.
Age is not a factor in determining the amount spent.
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