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 a data set that contains the dates of the last transaction (Last-TransactionDate), total number of transactions in the past 2 years (Frequency), and total spending during the past 2 years (Spending). A portion of the data set is shown in the accompanying table.

LastTransactionDate	Frequency	Spending
5/20/2017	407	41903
8/16/2018	454	35918
8/14/2017	49	27918

Click here for the Excel Data File a.Greg wants to calculate the number of days between January 1, 2019 and the last transaction date. Make a new variable "DaysSinceLast" which contains the number of days since the last transaction. (Hint: use the DATEDIF function if you are using Excel to Finish this problem.) What is the average number of days since the last purchase for all the customers?(Round your answer to two decimal places.) The average days since purchase? b.Make the RFM scores for each customer. How many customers have an RFM score of 555? What is their average spending?

The number of observations with an RFM of 555

Average spending c.Make a new variable called "LogSpending" which contains the natural logarithms for the total spending during the past 2 years. 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 2? d.Make a new variable called "AverageOrderSize" which contains the average spending per order. This is calculated by dividing total spending (Spending) by total number of transactions (Frequency) in the past 2 years. 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 2? e.Compare the number of observations in group 2 in parts c and d. Are the groups 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 is part c has fewer observations than the group in part d.
• One group has no observations, while the other group has 10 observations.

LastTransactionDate	Frequency	TotalSpending
5/20/2017	407	41903
8/16/2018	454	35918
10/22/2017	398	90138
3/18/2017	95	38068
1/15/2017	472	12649
5/31/2018	429	81922
3/18/2017	114	35510
1/26/2017	127	2104
1/15/2018	340	54785
1/15/2018	498	15445
10/24/2017	142	9070
4/3/2018	426	9281
7/28/2017	498	79742
2/23/2017	342	50802
3/17/2017	280	75526
6/3/2018	173	87778
2/28/2018	348	18809
5/5/2017	441	73938
8/19/2018	478	62887
5/3/2017	214	3754
8/8/2017	435	98567
9/6/2017	467	73877
8/8/2017	369	12098
8/25/2018	47	74101
9/18/2017	410	21248
2/1/2018	112	99325
1/12/2017	199	62240
6/27/2018	430	48229
8/30/2018	132	94055
6/10/2017	421	94950
1/8/2018	212	83898
5/20/2017	135	35174
1/12/2018	322	59407
7/14/2017	341	1959
1/16/2018	408	6222
5/21/2017	401	6869
1/15/2017	342	58784
4/7/2017	361	87110
4/12/2017	357	38309
9/19/2018	37	33898
4/16/2017	476	38530
3/21/2017	74	90699
7/18/2017	252	17934
4/28/2017	419	68055
1/13/2018	184	11233
2/20/2017	348	66212
6/24/2018	330	27666
6/12/2018	328	99893
10/13/2017	301	28822
6/4/2017	358	61561
6/9/2017	174	43822
12/19/2017	49	14787
2/11/2017	433	17368
8/11/2018	421	51515
5/11/2018	447	64139
4/27/2018	236	24636
5/17/2017	153	51118
3/9/2018	102	97597
5/3/2018	92	58045
7/27/2018	271	42809
1/24/2018	405	56691
7/21/2017	476	8454
7/11/2017	201	28039
10/7/2018	472	66126
2/14/2017	253	16901
8/11/2017	387	82491
9/4/2018	496	78658
8/25/2018	202	85337
3/28/2018	72	7707
4/4/2017	93	79496
2/28/2017	131	49835
5/1/2018	99	23738
12/15/2017	208	73734
5/18/2018	416	77605
5/13/2018	320	31733
3/4/2017	377	31379
6/7/2017	298	10990
10/27/2018	173	871
7/17/2017	104	62012
4/17/2017	411	54796
12/13/2017	194	31079
2/11/2017	252	77797
2/8/2017	36	85079
9/26/2017	167	43450
9/29/2017	211	34979
11/5/2017	439	47439
8/9/2017	393	69868
10/25/2018	43	60852
8/23/2018	302	51489
10/30/2017	452	52068
4/2/2017	290	36179
6/22/2018	216	87808
11/18/2017	452	66355
5/7/2017	156	9398
4/23/2017	293	38447
2/25/2017	336	76362
3/30/2018	40	27081
1/15/2017	421	62775
6/6/2017	339	40509
10/4/2018	205	25400
7/30/2018	441	39151
9/17/2017	208	4417
12/5/2017	110	33167
7/14/2018	369	3805
12/13/2017	92	68284
3/23/2017	499	53565
4/4/2018	237	52203
10/2/2017	468	87563
2/16/2017	275	65212
5/19/2017	150	51287
7/24/2018	296	83074
5/16/2018	32	35092
7/27/2018	91	24024
12/27/2017	330	62626
5/22/2018	259	2744
3/3/2018	372	48638
12/29/2017	189	24837
6/18/2017	254	30391
7/19/2017	122	68307
3/28/2018	183	50775
8/15/2018	77	58786
9/3/2017	61	50439
9/28/2018	153	98854
1/5/2018	257	30694
7/29/2017	55	8907
2/26/2017	290	3103
1/13/2017	107	91861
5/14/2017	389	3945
3/29/2018	291	81141
4/14/2018	439	55284
9/29/2018	347	81608
6/24/2017	399	24679
5/22/2018	352	72740
3/1/2017	317	26660
5/23/2017	193	83761
12/26/2017	135	61779
2/24/2018	59	53534
10/30/2017	292	5409
4/16/2017	242	49843
5/22/2017	151	2542
2/22/2018	258	16025
1/17/2017	495	42922
8/2/2018	295	34825
7/23/2017	167	96373
11/17/2017	422	28736
8/8/2018	186	76243
1/7/2017	489	81911
3/10/2018	142	72129
6/16/2017	46	30712
5/31/2018	48	44485
7/15/2017	36	24022
5/7/2018	130	53103
12/28/2017	316	18634
11/15/2017	467	91113
8/22/2017	456	81200
2/6/2017	420	37089
3/23/2018	270	33167
3/16/2018	274	10645
11/8/2017	341	92259
2/12/2018	91	49900
1/29/2018	420	90634
6/15/2018	373	2390
4/25/2018	364	66438
9/3/2017	333	18649
1/27/2017	89	99901
5/4/2018	221	57565
4/9/2017	466	67351
4/14/2018	470	76579
2/19/2018	299	21969
7/31/2017	81	26998
6/3/2018	468	23103
2/4/2017	444	82335
7/31/2018	118	21490
10/10/2018	325	44822
4/23/2017	391	34047
8/10/2017	396	80877
7/30/2018	280	15692
2/8/2018	150	6394
11/2/2017	364	33758
11/18/2017	252	3715
8/30/2018	455	53038
3/19/2018	56	18704
4/28/2018	391	18682
8/9/2017	223	33483
10/27/2018	260	12163
9/5/2018	193	65445
4/26/2018	445	55284
2/23/2017	267	86645
9/4/2018	113	57781
1/18/2017	403	53594
7/22/2018	434	30433
10/18/2017	481	93731
3/5/2017	106	45400
6/21/2018	101	42058
3/20/2018	48	20197
1/25/2017	39	42663
3/9/2018	330	8582
10/2/2018	348	92986
6/24/2017	315	92100
8/14/2017	49	27918