LEVEL OF CREDIT CARD DEBT AND EFFORTS OF BANKS TO RAISE INTEREST RATE ON THE CARDS

 

IN CONJUNCTION WITHE HOUSING FORCLOSURE CRISIS IN 2009, MANY ECONOMIST EXPRESSED INCREASING CONCERN ABOUT THE LEVEL OF CREDIT CARD DEBT AND EFFORTS OF BANKS TO RAISE INTEREST RATE ON THE CARDS. THE BANKS CLAIMSED THE INCREASE WERE JUSTIFY. A SENATE SUB-COMMITEE DECIDED TO DETERMINE IF THE AVERAGE CREDIT CARD BALANCE DEPENDS ON THE TYPE OF CREDIT CARD USED. THE CARDS UNDER CONSIDERATION ARE VISA , MASTERCARD , DISCOVER AND AMERICAN EXPRESS. THE SAMPLE SIZES TO BE USED FOR EACH LEVEL ARE 25, 25, 26 AND 24 RESPECTIVELY.

A. DESCRIBE THE PARAMETER OF INTEREST FOR THE ANALYSIS

B. DETERMINE THE FACTOR ASSOCIATED WITH THE EXPERIMENT.

C. DESCRIBE THE LEVELS OF THE FACTOR ASSOCIATED WITH THE ANALYSIS.

D. STATE THE NUMBER OF DEGREE OF FREEEDOM AVAILABLE FOR DETERMINING THE BETWEEN SAMPLE VARIATION

E. STATE THE NUMBER OF DEGREE OF FREEDOM AVAILABLE FOR DETERMINING THE WITHIN SAMPLE VARIATION.

F. STATE THE NUMBER OF DEGREE OF FREEDOMS AVAILABLE FOR DETERMINING THE TOTAL VARIATION.

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