Case Analysis Pilgrim Bank

Case Analysis - Pilgrim Bank

Group 10, Sec A, PGP I

PreliminariesInitial scanning of the data set reveals that it contains three types of data as listed belowa) Nominal – Online and district; b) Ordinal- Income & Age, and c) atio- !en"re & #rofits$ Approach%ince some of the data points are missing, we have deleted the entire data set pertaining to that data point$ !his has red"ced over all sample sie to ''(* incl"ding '+ for online and +(+ for non-online c"stomer gro"ps .aro"nd ((/)$ Descriptive Statistics an !istogram o" Count o" Age #rt $nline Customers%

;ean ;eian ;oe SD ange

Pro"it $nline *$' '9$444 -*$444 '+4$*8 '++$444

Pro"it $""line '8$'' '4$44 -'$444 '($9' ''+'$444

5000

Income $(( 8$444 8$444 '$**8 ($444

&enure 4$++8 ($'4 9$4 ($' $444

4000 3000

Ofine

2000

online

1000 0 1 2 3 4 5 6 7

Analysis% 0irst, simple regression models of profit, with each of the independent variables i$e$ Age, income, ten"re, Online1Not Online and 2istrict .3sing two d"mmy variables) was attempted$ It was fo"nd that Income, Age, !en"re and 2istrict '44 have positive relationship with  profitability$ Also, the regression model of profit vers"s online1offline shows that online c"stomers are 5 .%lope in this model) more profitable than offline c"stomers$ 6"t the t-stat val"es when we carry o"t the two tailed tests gives a # val"e greater than 4$4 which is needed for significance$ %o this model is not significant$

 Suare A.uste  S / value Co"" Intercept Coe"" ariale t Stat ariale ariale P val ariale

$nline *$*7-4 -($87-48 4 $ ( 4  '8$'  $ 4 4' ( 4 $ ( +8 ( 4 $ * 8+ 9

Age 4 $4' 4 * 4 $4 ' 4 '  9 * $ 8 '8$9(9 '$8+8* '$98 8$7-4

Income 4$4' 4$4' 4$44 '+$9 9$94 ''$*(* ($(7-4

&enure 4$4'(( 4$4'(( 89($'4 8 $ 9  $8*(4 '8 $4  ' '$*7-9

District '1(00)1*00+ 4 $ 44 '  4 $4 4 '  '+$4 +$4 *+$'* + $8' ' 8 $ * 4 (  $' 4 8 8 ($((7-4 4$''9

After After this, we carried carried o"t step#ise regression   considering the independent variables$ :e concl"de that the profitability is correlated with ten"re, income and age .Other variables t"rn o"t to be insignificant in the t test)$ !he ' val"e wor