Business Analytics (2nd Edition)
Business Analytics (2nd Edition)
2nd Edition
ISBN: 9780321997821
Author: James R. Evans
Publisher: PEARSON
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Chapter 3, Problem 21PE

The Excel file Credit Risk Date Provides information about bank customers who had applied for loans6 The data include the purpose of the loan, checking and savings account balances, number of months as a customer of the bank, months employed gender, marital status, age, housing status and number of years at current residence, job type, and credit-risk classification by the bank.

6Based on Efraim Turban, Ramesn Sharda. Dursun Delen, and David King, Business Intelligence: A Managerial Approach. 2nd ed. (Upper Saddle River. NJ: Prentice Hall 2011).

  1. Compute the combined checking and savings account balance for each record in the database. Then sort the records by the number of months as a customer of the bank. From examining the data does it appear that customers with a longer association with the bank have more assets? Construct a scatter chart to validate your conclusions.
  2. Apply Pareto analysis to draw conclusions about the combined amount of money in checking and savings accounts.
  3. Use Excel’s filtering capability to extract all records for new-car loans. Construct a pie chart showing the marital status associated with these loans.
  4. Use Excel’s filtering capability to extract all records for individuals employed less than 12 months. Can you draw any conclusions about the credit risk associated with these individuals?

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Business Analytics (2nd Edition)

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