Greg Metcalf works for a national credit card company, and he is performing a customer value analysis on a subset of credit card customers. In order to perform the RFM analysis on the customers, Greg has compiled the accompanying data file that contains the dates of the last transaction $($LastTransactionDate$),$ total number of transactions in $2017$ and $2018($Frequency$),$ and total spending during $2017$ and $2018($Spending$).$

Click here for the Excel Data File

Greg wants to calculate the number of days between January $1,2022,$ and the last transaction date. Create a new variable $$DaysSinceLast$$ that contains the number of days since the last transaction. $($Hint: use the DATEDIF function if you are using Excel to complete this problem.$)$ What is the average number of days since the last purchase for all the customers?

Note: Round your answer to two decimal places.

Create the RFM scores for each customer. How many customers have an RFM score of $325?$ What is their average spending?

Note: Round "Average spending" to the nearest whole dollar amount.

Create a new variable called $$LogSpending$$ that contains the natural logarithms for the total spending during $2017$ and $2018.$ Bin the logarithm values into $5$ equal$-$interval groups. Label the groups using numbers $1($lowest values$)$ to $5($highest values$).$ How many observations are in group $1?$

Create a new variable called $$AverageOrderSize$$ that contains the average spending per order. This is calculated by dividing total spending $($Spending$)$ by total number of transactions $($Frequency$)$ in $2017$ and $2018.$ Bin the values of AverageOrderSize into $5$ equal$-$interval groups. Label the groups using numbers $1($lowest values$)$ to $5($highest values$).$ How many observations are in group $1?$

Compare the number of observations in group $1$ in parts c and d$.$ Are the groupings the same or different?

multiple choice

The groups in parts c and d are the same.

The group in part c has more observations than the group in part d$.$

The group in part c has fewer observations than the group in part d$.$

One group has no observations, while the other group has $3$ observations.

Data:

LastTransactionDate Frequency TotalSpending

$5/20/201740741903$

$8/16/201845435918$

$10/22/201739890138$

$3/18/20179538068$

$1/15/201747212649$

$5/31/201842981922$

$3/18/201711435510$

$1/26/20171272104$

$1/15/201834054785$

$1/15/201849815445$

$10/24/20171429070$

$4/3/20184269281$

$7/28/201749879742$

$2/23/201734250802$

$3/17/201728075526$

$6/3/201817387778$

$2/28/201834818809$

$5/5/201744173938$

$8/19/201847862887$

$5/3/20172143754$

$8/8/201743598567$

$9/6/201746773877$

$8/8/201736912098$

$8/25/20184774101$

$9/18/201741021248$

$2/1/201811299325$

$1/12/201719962240$

$6/27/201843048229$

$8/30/201813294055$

$6/10/201742194950$

$1/8/201821283898$

$5/20/201713535174$

$1/12/201832259407$

$7/14/20173411959$

$1/16/20184086222$

$5/21/20174016869$

$1/15/201734258784$

$4/7/201736187110$

$4/12/201735738309$

$9/19/20183733898$

$4/16/201747638530$

$3/21/20177490699$

$7/18/201725217934$

$4/28/201741968055$

$1/13/201818411233$

$2/20/201734866212$

$6/24/201833027666$

$6/12/201832899893$

$10/13/201730128822$

$6/4/201735861561$

$6/9/201717443822$

$12/19/20174914787$

$2/11/201743317368$

$8/11/201842151515$

$5/11/201844764139$

$4/27/201823624636$

$5/17/201715351118$

$3/9/201810297597$

$5/3/20189258045$

$7/27/201827142809$

$1/24/201840556691$

$7/21/20174768454$

$7/11/201720128039$

$10/7/201847266126$

$2/14/201725316901$

$8/11/201738782491$

$9/4/201849678658$

$8/25/201820285337$

$3/28/2018727707$

$4/4/20179379496$

$2/28/201713149835$

$5/1/20189923738$

$12/15/201720873734$