Century National Bank
Century National Bank has offices in several cities in the
Midwest and the southeastern part of the United States. Mr. Dan Selig, president, and CEO would like to know the characteristics of his checking account customers. What is the balance of a typical customer?
How many other bank services do the checking account customers use? Do the customers use the ATM service, and, if so, how often? What about debit cards? Who uses them, and how often are they used?
To better understand the customers, Mr. Selig asked Ms. Wendy Lamberg, director of planning, to select a sample of customers and a report. To begin with, she has appointed a team from her staff. You are the head of the team and responsible for preparing the report. You select a random sample of 60 customers. In addition to the balance in each account at the end of last month, determine (1) the number of ATM transactions in each month; (2) the number of other bank services the customer uses; (3) whether the customer has a debit card; and (4) whether or not interest is paid on the checking account. The sample includes customers from the branches in Cincinnati, Ohio; Atlanta, Georgia; Louisville, Kentucky, and Erie, Pennsylvania.
Develop a graph or table that portrays the checking balances. What is the balance of a typical customer? Do many customers have more than $2,000 in their accounts? Does it appear that there is a difference in the distribution of the accounts amount the four branches? Around what value do the account balances tend to cluster?
Determine the mean and median of checking balances. Compare the mean and the median balances for the four branches. Is there a difference between the branches? Be sure to explain the difference between the mean and the median in your report.
Determine the range and standard deviation of the checking account balances. What do the first and third quartiles show? Determine the coefficient of skewness and indicate what it shows. Because Mr. Selig does not deal with statistics daily, include a brief description and interpretation of the standard deviation and other measures.