A National Bank issues MasterCard credit cards to its customers. A main factor in determining whether...
A National Bank issues MasterCard credit cards to its customers. A main factor in determining whether a credit card will be profitable to the bank is the average monthly balance that the customer will maintain on the card that will be subject to finance charges. Bank analysts wish to determine whether there is a relationship between the average monthly credit card balance and the income stated on the original credit card application form. The following sample data have been collected from existing credit card customers:
|
Income $1000 |
Credit Balance $100 |
|
40 |
3 |
|
35 |
14 |
|
50 |
11 |
|
60 |
2 |
|
55 |
1 |
|
60 |
9 |
|
30 |
24 |
|
70 |
0 |
|
40 |
13 |
|
40 |
1 |
|
40 |
20 |
|
40 |
3 |
- Indicate which variable is to be the independent variable and which is to be the dependent variable in the bank's analysis and indicate why.
- Set up a scatter-plot, and discuss what if any relationship appears to be present between two variables.
- Use the least-squares method to predict the average monthly credit card balance when income is $80,000.
- Interpret the meaning of the regression coefficients in this problem.
- Compute the standard error of the estimate.
- Compute the coefficient of determination r² and interpret its meaning in this problem.
- At a significance level of 0.01 can you conclude that income is a good predictor of the monthly credit card balance?
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A National Bank issues MasterCard credit cards to its customers.
A main factor in determining whether...
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A mann issues Wedit cards to its customers. A main factor in determining wheter a credit card will be profitable to the bank is the average month 14 balance that the customer will maintain on te card that will be subúllt to finance charges. Bank analysty, wish to determine whether there is a relationship between tee the average monthly Wedit wie balance and the income stated on te original, Wedit card application form The accompanying table contains the semple data...
iti lance level of 411101ch A mann issues wedit cards to its customers. A main factor...
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26. J&G Bank receives an average of 30,000 credit card applications each month. Approximately 60% of...
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Ultra Day Spa provided $89,850 of services during Year 1. All customers paid for the services with credit cards. Ultra s...
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A mann issues Wedit cards to its customers. A main factor in determining wheter a credit card will be profitable to the bank is the average month 14 balance that the customer will maintain on te card that will be subúllt to finance charges. Bank analysty, wish to determine whether there is a relationship between tee the average monthly Wedit wie balance and the income stated on te original, Wedit card application form The accompanying table contains the semple data...
iti lance level of 411101ch A mann issues wedit cards to its customers. A main factor in determining whether a widit card will be profitable to re bann is te averase month 14 balance that the customer will maintain on the card that will be subullt to finance charges. Band analysts wish to be termine whether there is a relationship between te the average month14 Wedit card balance and the income stated on te original, Wedit card application form accompanying...
26. J&G Bank receives an average of 30,000 credit card applications each month. Approximately 60% of them are approved. Each customer charges an aver- age of $2,000 to his or her credit card each month. Approximately 85% pay off their balances in full, and the remaining incur finance charges. The aver- age finance charge is 3.5% per month. The bank also receives income from fees charged for late pay- ments and annual fees associated with the credit cards. This is...
J&G Bank receives a large number of credit-card applications each month, an average of 30,000 with a standard deviation of 4,000, normally distributed. Approximately 60% of them are approved, but this typically varies between 50% and 70%. Each customer charges a total of $2,000, normally distributed, with a standard deviation of $250, to his or her credit card eaclh month. Approximately 85% pay off their balances in full, and the remaining incur finance charges The average finance charge has recently...
Ultra Day Spa provided $89,850 of services during Year 1. All
customers paid for the services with credit cards. Ultra submitted
the credit card receipts to the credit card company immediately.
The credit card company paid Ultra cash in the amount of face value
less a 1 percent service charge.
Required
a. Show the credit card sales (Event 1) and the
subsequent collection of accounts receivable (Event 2) in a
horizontal statements model like the one shown next. In the...
Bank of Delaware The National Bank of Delaware County (NBDC), with 12 locations in New York, is an active lender for customers looking to purchase a home, finance a small business, or open a new credit card. Their mission is clear: "As an independent bank, we make it our business to reinvest in the communities we serve by making loans to individuals and businesses, supporting community projects, events and charities." In order to provide the best rates possible without carrying...
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