Data Analysis

In recent year, the use of credit card has been growing rapidly; many bank and non-bank institutes are now providing various types of credit cards. When facing such a wide range of choices, interest rate seems to be the fundamental aspect that affects customers’ decisions most. Therefore, analysing the 2011 credit card dataset by finding the most influential factor of interest rate can provide New Bank a comprehensive view of the credit card market, and hence assist them in introducing a new credit card. Currently, an information from CANNEX for the year 2011 indicates there are 281 credit card products in the market and the interest rate of these cards vary from approximately 10.5% to 22%. The availability of reward program, types of institutes and number of free interest days that included in the information are the factors that might have an impact on credit cards’ interest rate. In this report, both historical and current data are investigated and the historical data …)

As the interest rates vary widely, some extreme values might distort the overall findings. However, calculating the z scores of a dataset can easily find out the extreme values or outliners, it is a measure of relative standing. Z score is calculated by a value subtracted from the mean and divided by its standard deviation. A z score that is greater than 1 or smaller than -1 is referred as an outlier. In the 2011 credit card interest rate, there is no outlier existed; appendix A contains an outlier analysis example. If any outliers are found, removing them can prevent analyst from having an extreme trend thereby enhances the reliability of findings.