Question

A major bank collected data on 100,000 of its customers (income, sex, location, number of cards, etc.) and then computed how much profit is made from the account of these customers during the past calendar year.

a) Identify whether the data are cross-sectional or time-series

(b) Give a name to each variable and indicate if the variable categorical, ordinal, or numerical

(c) List any concerns you might have for the accuracy of the data.

Answer 1

Data is collected over 100000 customers under variables Income, Sex, Location, No. of Cards

A)

data which is being collected is an Cross sectional data

because

we know that if data is collected over several variables on a particular time period then it is a  cross sectional data

and if data of one variable is collected on a variable over time period then it is a Time series data .

B)

Now we will define whether which variable is categorical, ordinal and numerical

Income : Since income variable is continous then it is a numerical variable .

Sex : Since a person can only be male, female, or other then it will be categorical variables .

Location : If location is defined by Zip codes then it is a categorical variable since one person can belong to only one pin code i.e., to a one category it belongs .

Number of cards : Since no of cards can be ordered

SO it is an ordinal data

since it can be only take values 0, 1, 2, 3, ....

C)

It can be checked if we have dataset at our hand .