VILLANTE, Stephen U.
Bachelor in Public Administration 3-1
CASE STUDY
(MIDTERM EXAM)
(OPEN FORMAT)
Assume that you work in the Planning Department of XYZ National Bank and report to
Miss X. You will need to do some data analysis and prepare a short written report. The written
part of the report should not exceed a page in length. Remember, Mr. Y is the President of the
bank, so you will want to ensure that your report is complete and accurate. A copy of the data
appears in page 3.
The XYZ National Bank has offices in several areas of Metro Manila. Mr. Y, 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 debit
cards? Who uses them, and how often are they used?
To better understand the customers, Mr. Y asked Miss X, Director of Planning to select a
sample of customers and prepare a report. To begin, she has appointed a team from her staff.
You are the head of the team and responsible for preparing the report. You select a random
sample of 60 customers. In addition to the balance in the account at the end of last month, you
determine:
(1) the number of ATM transactions in the last month;
(2) the number of other bank services (a savings account, a certificate of deposit, etc.);
(3) whether the customer has a debit card (this is a relatively new bank service in which
charges are made directly to the customer’s account);
(4) whether or not interest is paid on the checking account. The sample included
customers from the branches in Makati, Quezon City, Pasig City, and San Juan.
1. Develop a graph or table that portrays the checking balances. What is the balance of a
typical customer? Do many customers have more than Php 200,000 in their accounts?
Does it appear that there is a difference in the distribution of the accounts among the four
branches? Around what value do the account balances tend to cluster?
The following graph and tables were created based on the collected data to support the written
report requested by Mr. Y:
2. Determine the mean and median of the checking account balances. Compare the mean
and the median balances for the four branches? Is there a difference among the
branches? Be sure to explain the difference between the mean and the median in your
report.
3. Determine the standard deviation of the checking account balances. Because Mr. Y does
not deal with statistics daily, include a brief description of the standard deviation and
other measures.
XYZ Standard Deviation Range Minimum Maximum
Branch
Makati 47431.68 157000 34300 191300
Manila 35087.66 128400 112500 240900
Quezon 68348.29 224400 3200 227600
Pasig City 70922.19 239000 16700 255700
Overall 59690.49 252500 3200 255700
Table 3. Standard Deviation and other measures of checking balance per branch.
The variety of balances in checking accounts has a standard deviation of P59,690.49
pesos. A measure of how distributed a group of values is may be found in the standard deviation.
Table 2 demonstrates that the standard deviation of the Manila branch is much lower
(P35,087.66) than that of the customers of the other branches. This is due to the fact that the
interval of the account balance of each customer in the Manila branch is significantly smaller.
The bank has branch offices in four different places in Metro Manila: Makati, Manila, Quezon
City and Pasig City. Mr. Y would like to know if there are differences in the mean checking
account balance among the branches. If there are any differences, where do these differences
occur?
Mr. Selig is also interested in the ATMs. Is there a difference in ATM use among
the four branches? Also, do customers who have debit cards tend to use the ATMs differently
than those who do not have debit cards? Also, is there a difference in ATM use by those with
checking accounts that pay interest versus those that do not?
THE DATA SET
X1 – account balances in peso
X2 – number of ATM transactions in the month
X3 – number of other bank services used
X4 – has a debit card (1=yes, 0=no)
X5 – receives interest on the account (1=yes; 0=no)
X6 – branches where banking is done (1=Makati; 2=Manila; 3=Quezon City; 4=Pasig City)
Clie X1 X2 X3 X4 X5 X Clie X1 X2 X3 X4 X5 X6
nt 6 nt
1 175600 13 4 0 1 2 31 195800 6 2 1 0 2
2 74800 9 2 1 0 1 32 63400 2 7 1 0 4
3 150100 10 1 0 0 1 33 58000 4 1 0 0 1
4 183100 10 4 0 1 3 34 132000 4 5 1 0 1
5 162200 14 6 0 1 4 35 167500 6 7 1 0 2
6 188600 17 3 0 1 1 36 78900 8 4 0 0 4
7 74000 6 3 0 0 3 37 173500 12 7 0 1 3
8 159300 10 8 1 0 1 38 178400 11 5 0 0 1
9 116900 6 4 0 0 4 39 132600 16 8 0 0 3
10 212500 18 6 0 0 2 40 205100 14 4 1 0 4
11 155400 12 6 1 0 3 41 104400 7 5 1 0 1
12 147400 12 7 1 0 1 42 188500 10 6 1 1 2
13 191300 6 5 0 0 1 43 179000 11 4 0 1 3
14 121800 10 3 1 0 1 44 76500 4 3 0 0 4
15 100600 12 4 0 0 1 45 164500 6 9 0 1 4
16 221500 20 3 1 0 4 46 3200 2 0 0 0 3
17 13700 7 2 0 0 3 47 126600 11 7 0 0 4
18 16700 5 4 0 0 4 48 89000 7 1 0 1 1
19 34300 7 2 0 0 1 49 220400 14 5 0 0 2
20 255700 20 7 1 0 4 50 240900 16 8 0 0 2
21 227600 15 4 1 0 3 51 133800 14 4 1 0 2
22 149400 11 2 0 1 1 52 207600 12 5 1 0 2
23 214400 17 3 0 0 3 53 170800 13 3 1 0 1
24 199500 10 7 0 0 2 54 213800 18 5 0 1 4
25 105300 8 4 1 0 3 55 237500 12 4 0 0 2
26 152600 8 4 0 1 2 56 145500 9 5 1 1 3
27 112000 8 6 1 0 3 57 148700 8 4 1 0 4
28 183800 7 5 1 1 3 58 112500 6 4 1 0 2
29 174600 11 2 0 0 2 59 198900 12 3 0 1 2
30 161600 10 4 1 1 2 60 215600 14 5 1 0 2
Analysis:
Graph 1: Checking Account
Balances of XYZ National
Bank Customers
1-Red 2-Green 3-Blue 4-Gray
The Graph 1 shows the clients of XYZ National Bank's four branches are represented by their
checking account balances in the bar graph that can be seen above. Only twenty percent of
clients had more than two hundred thousand pesos in their accounts, while the average amount
held by a customer is somewhere between one hundred thousand and one fifty thousand pesos. It
demonstrates that there is a disparity in the accounts' distribution among the various branches of
the company. According to the graph, the account balances have a tendency to congregate in the
ranges of 150,000 and 200,000.
Table 1: Other bank services account customers use
Other Bank Services Used
Mean 4.416666667
Standard Error 0.255218602
Median 4
Mode 4
Standard Deviation 1.976914791
Sample Variance 3.90819209
Table 1 shows thee customers of the XYZ National Bank make use of a variety of
different banking services, which are outlined in Table 2. The customer makes use of a total of
265 different banking services, with the number of those services ranging from 0 to 9. A
customer uses 4.42 additional banking services throughout the course of a typical calendar
month.
Table 2: the number of ATM transactions in the last month
XYZ Branch Mean
Makati 9.38
Manila 11.29
Quezon City 10
Pasig City 10.46
The average number of transactions made at each of the four locations is shown in Table 2. The
difference between the four branches is not entirely undistinguishable; nonetheless, the Manila
branch has a larger mean transaction amount (11.9) compared to the Makati branch (9.38), which
has the lowest mean transaction amount among the branches.
Table 3: No. of Debit Card Holder and Non- Holder of XYZ National Bank
Number of Clients
Has Debit Card (1) 26
No Debit Card (0) 34
Total 60
Table 3 shows the quantity and proportion of customers having debit cards. 26 consumers
(43.33%) have a debit card, whereas 34 (56.7%) do not. More people don't have debit cards than
do.
Table 4: Mean and Median of Balances per branch
Makati Manila Q.C Pasig Overall
Mean 128137.5 187964.7 135935.7 142346.1 149986.6
Median 139700 195800 150450 148700 160450
Mode No mode No mode No mode No mode No mode
The result of the mean shows that the Manila branch is the highest among the four branches. It
also has the greatest mean and median balance, which are P187,964.71 and P195,800,
respectively. This shows that the Manila branch is the highest. The Makati branch, on the other
hand, has the lowest mean, coming in at P128,137.50, and the highest median, coming in at
P139,700. Since the mean account amount of P149,986.67 is less than the median account
balance of P160,450, we may draw the conclusion that the distribution is slightly positively
affected. The median account balance is P160,450 (-0.6167).
