Consumer Research Stats Case Analysis
Consumer Research, Inc. is investigating whether there is any correlation between specific characteristics of credit card users and the amount these users charge on credit cards. Their objective is to determine if these characteristics can accurately predict the annual dollar amount charged by credit card users. Data was collected from a sample of 50 credit card consumers presenting information on the annual income (referred as Income), size of household (referred as Household), and the annual credit card charges (referred as Charges) for these consumers. A statistical analysis; including a descriptive, simple regression, and multiple regression tests, of this data was performed and the findings are presented below. Due to the uncertainty of the size of the intended population with respect to the size of the sample data, any inferences implied from this analysis are merely observations and should not be applied as absolute findings with regards to the entire credit card consumer population.
Descriptive statistics was performed for each of the three characteristics (variables), Charges, Income, and Household, from the survey. The sample data reveals the average credit card user has an Income of $43,480, a Household consisting of 3.4 people, and has $3,964 in credit card Charges. To determine if a relationship exists between Charges and Income, or Charges and Household, a scatter plot graph illustrates a positive relationship for both consumer characteristics (Exhibit 1). However, there is no apparent relationship between Income and size of Household. This finding clarifies that the two characteristics are indeed independent of each other and are good variables to use in determining multiple characteristic effects on credit card charges.
Furthermore, the strength of the relationship between Charges and Income, and Charges and Household is relatively strong. Reviewing the correlation coefficients, Household appears to have a slightly stronger
Descriptive statistics was performed for each of the three characteristics (variables), Charges, Income, and Household, from the survey. The sample data reveals the average credit card user has an Income of $43,480, a Household consisting of 3.4 people, and has $3,964 in credit card Charges. To determine if a relationship exists between Charges and Income, or Charges and Household, a scatter plot graph illustrates a positive relationship for both consumer characteristics (Exhibit 1). However, there is no apparent relationship between Income and size of Household. This finding clarifies that the two characteristics are indeed independent of each other and are good variables to use in determining multiple characteristic effects on credit card charges.
Furthermore, the strength of the relationship between Charges and Income, and Charges and Household is relatively strong. Reviewing the correlation coefficients, Household appears to have a slightly stronger