Credit Card Usage Analysis

Data Set Overview

  • The data set consists of the following credit card types:
    • Visa
    • Discover
    • MasterCard

Frequency Distribution Table

  • A frequency distribution table captures how often each credit card type appears in the dataset. Rounding to two decimal places is necessary for relative frequency.

Table Format:

Credit CardFrequencyRelative Frequency
Visa80.32
MasterCard70.28
Discover100.40
Total:251.00
Frequency Calculations:

  • Visa:

    • Count of Visa: 8

  • MasterCard:

    • Count of MasterCard: 7

  • Discover:

    • Count of Discover: 10

  • Total Frequency:

    • Total number of entries = 8 + 7 + 10 = 25
Relative Frequency Calculations:

  • Relative Frequency is calculated using the formula:
    Relative Frequency=FrequencyTotal Frequency\text{Relative Frequency} = \frac{\text{Frequency}}{\text{Total Frequency}}

  • Visa:

    • Relative Frequency = 825=0.32\frac{8}{25} = 0.32

  • MasterCard:

    • Relative Frequency = 725=0.28\frac{7}{25} = 0.28

  • Discover:

    • Relative Frequency = 1025=0.40\frac{10}{25} = 0.40

Bar Chart Construction

  • A bar chart is a graphical representation used to visualize frequency distributions. Each credit card type is represented along the horizontal axis, while the vertical axis represents frequency or relative frequency.

Bar Chart Details:

  • X-axis (Credit Card Types): Visa, MasterCard, Discover

  • Y-axis (Frequency): Ranges from 0 to Maximum Frequency (10)

    • Ensure to label bars appropriately to indicate the corresponding types.
    • Bars should reflect the frequency counts (i.e., height of the bar corresponds to the frequency: 8 for Visa, 7 for MasterCard, and 10 for Discover).

  • Steps to Create Bar Chart:

    1. Draw two perpendicular axes: x-axis (horizontal) and y-axis (vertical).
    2. Mark the x-axis with credit card names (Visa, MasterCard, and Discover).
    3. For each credit card type, draw a vertical bar up to the respective frequency number on the y-axis.
    4. Ensure proper spacing between bars and label each bar clearly.

  • The chart serves to visually convey the distribution of credit card uses based on the provided data set, facilitating analysis and comparison between the different credit card types.