Century National Bank

1668 Words Mar 21st, 2013 7 Pages
Case 1: Century National Bank
The 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 debt cards? Who uses them, and how are they used?
To better understanding the customers, Mr. Selig asked Mrs. Wendy Lamberg, Director of planning, to select a sample of customers and prepare a report. To begin, she has appointed a team of us. Then, we started by selecting a random sample of 60 customers. In
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of checking accounts | 32 up to 453 | 4 | 453 up to 874 | 6 | 874 up to 1295 | 9 | 1295 up to 1716 | 16 | 1716 up to 2137 | 16 | 2137 up to 2558 | 9 |

As we see , more than half of the accounts are clustered in two classes between 1295 to 2137
From that we can identify the typical costumer by calculate the mean of these two classes

The mean account balance of a typical costumer is 1709.125 , and the value along which most of the account balance cluster is 1721.5
We have 12 of the checking accounts are above 2000 which represent 20% of the total checking account

Determining the mean and the median of the checking accounts for Century National Bank, we are trying to find the single value that will represent all 60 checking accounts in our sample. That single value will be measure of central tendency.
Arithmetic mean is widely used measure of central tendency. It has several important properties: 1. Every set of interval-level data has a mean 2. All the values are included in computing a mean 3. A set of data has only one mean 4. The mean is useful measure for comparing two or more populations 5. The arithmetic mean is only measure of central tendency where the sum of the deviations of each value from the mean will always be zero

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