Why should the small business owner consider the demographics of an area when choosing a location for opening a new business? Name some sources of demographic information that are valuable tools to use in this evaluation.© BrainMass Inc. brainmass.com October 17, 2018, 9:46 am ad1c9bdddf
A small business owner would want to consider demographics and use that information along with the industry/type of products being sold. The basic demographic information for the potential location should be analyzed, including gender percentages, income levels, ...
This solution explains why small businesses should consider demographics when choosing a location. Sources of demographic information that are valuable tools is also discussed.
Exploratory Data Analysis for AJ Davis, a department store chain
See attached data file.
AJ DAVIS is a department store chain, which has many credit customers and wants to find out
more information about these customers. A sample of 50 credit customers is selected with data
collected on the following five variables.
LOCATION (Rural, Urban, Suburban),
INCOME (in $1,000's - be careful with this),
SIZE (Household Size, meaning number of people living in the household),
YEARS (the number of years that the customer has lived in the current location), and
CREDIT BALANCE (the customers current credit card balance on the store's credit card, in $).
The data appears on the attachment
PROJECT PART A: Exploratory Data Analysis
1. Open the file GM533 Project Consumer.xls
2. For each of the five variables, process, organize, present and summarize the data.
Analyze each variable by itself using graphical and numerical techniques of
summarization. Use MINITAB as much as possible, explaining what the printout tells
you. You may wish to use some of the following graphs: stem-leaf diagram,
frequency/relative frequency table, histogram, boxplot, dotplot, pie chart, bar graph.
Caution: not all of these are appropriate for each of these variables, nor are they all
necessary. More is not necessarily better. In addition be sure to find the appropriate
measures of central tendency, and measures of dispersion for the above data. Where
appropriate use the five number summary. Once again, use MINITAB as appropriate,
and explain what the results mean.
3. Analyze the connections or relationships between the variables. There are ten pairings
here (Location and Income, Location and Size, Location and Years, Location and Credit
Balance, income and Size, Income and Years, Income and Balance, Size and Years,
Size and Credit Balance, Years and Credit Balance). Use graphical as well as numerical
summary measures. Explain what you see. Be sure to consider all 10 pairings. Some
variables show clear relationships, while others do not.
4. Prepare your report in Microsoft Word (or some other word processing package),
integrating your graphs and tables with text explanations and interpretations. Be
sure that you have graphical and numerical back up for your explanations and
interpretations. Be selective in what you include in the report. I'm not looking for a 20
page report on every variable and every possible relationship (that's 15 things to do).
Rather what I want you do is to highlight what you see for three individual variables (no
more than 1 graph for each, one or two measures of central tendency and variability (as
appropriate), and two or three sentences of interpretation). For the 10 pairings, identify
and report only on three of the pairings, again using graphical and numerical summary
(as appropriate), with interpretations. Please note that at least one of your pairings
must include Location and at least one of your pairings must not include Location.
Submission: The report from part 4 including all relevant graphs and numerical
analysis along with interpretations.
Format for report:
A. Brief Introduction
B. Discuss your 1st individual variable, using graphical, numerical summary
C. Discuss your 2nd individual variable, using graphical, numerical summary
D. Discuss your 3rd individual variable, using graphical, numerical summary
E. Discuss your 1st pairing of variables, using graphical, numerical summary
F. Discuss your 2nd pairing of variables, using graphical, numerical summary
G. Discuss your 3rd pairing of variables, using graphical, numerical summary