New Mexico National Bank New Mexico National Bank (NMNB) operates branches in 23
ID: 434071 • Letter: N
Question
New Mexico National Bank New Mexico National Bank (NMNB) operates branches in 23 cities and towns through out the state of New Mexico. The bank offers a complete range of financial services, including Visa and MasterCard credit cards. New Mexico National Bank (NMNB) has 53,400 people in the state using its credit cards. Based on their original applications, the bank has certain information about these individuals, including name, address, zip code, telephone number, income, education, and assets. NMNB is interesting in determining whether a relationship exists between the volume of purchases charged on credit cards and the demographic characteristics of the individual cardholders. For example, are individuals in certain parts of the stet more or less likely to be heavy users of the card? Is there a relationship between the person's level of education and card usage? The data can be used to more effectively target offering sent through the mail if significant relationships are found. Paul Bruney, research director for NMNB, is in the process of developing a design for the research. If you were Paul Bruney, how would you answer the following questions?
5. Could you use the sampling frame to draw a cluster sample? How would you go about it? Would it make any sense to do this?
Explanation / Answer
YES I BELIEVE THAT WE COULD USE THE GENERAL POPULATION OR IN THIS CASE THE USERS OF THIS CREDIT CARD TO DRAW A CLUSTER SAMPLE,
I WOULD DIVIDE THE WHOLE POPULATION OF NMNB THE CREDIT CARD USERS INTO THE BASIS OF THIER EDUCATION AS PER THIER LEVEL LIKE GRADUATE, UNDER GRADUATE ETC HENCE THEY WOULD BE HOMOGENEOUS EXTERNALLY(NMNB CARD USERS) BUT INTERNALLY THEY WOULD BE DIVIDED ON THE BASIS OF THIER EDUCATION
IT WOULD MAKE SENSE TO DO IT AS IN FUTURE IT WOULD HELP US IN DETERMINING WHAT EDUCATION GROUP IS SPENDING MONEY ON WHAT AND WHICH GROUP SPENDS THE MOST OR LOWEST OR WHAT ITEMS THEY USE IT ON
NOTE PLEASE DO RATE THE ANSWER