FIXED INCOME SECURITIES

INNOVATIVE ASSIGNMENT
MBF22302T

DONE BY:
S. GNANA JULIAN(RA2252006010027)
YADU KRISHNAN. D (RA2252006010015)
FARDEEN. A (RA2252006010013)
INTRODUCTION:
The content is a paper on the correlation and regression
analysis of a bank survey conducted to understand the study on ATM and CDM
services. The paper begins by explaining what correlation and regression analysis
are and how they are measured. It then describes the factors used for the
correlation analysis, which is the income of the customers, and results of the
correlation analysis between age, banking needs, account type, satisfaction with
banking services, and income. Banking today has become easier and it has led to
a secure way for people to keep their hard-earned money in their bank accounts.
Technology has reduced everything to a click of a button and people can transfer
money from one account to another account even without standing in long queues
for hours. There are numerous options available to people ranging from debit
cards, credit cards, e-wallets, internet banking, and mobile banking, which have
replaced the traditional methods of transactions. Earlier payment through
electronic mode was restricted to making huge and lump sum payments for large-
value transactions and cheques were the main instruments of transactions for a
long time before technical innovations took place.

CORRELATION:
Correlation is a statistical measure that expresses the extent to
which two variables are linearly related (meaning they change together at a
constant rate). It is a common tool for describing simple relationships without
making a statement about cause and effect. In statistic, correlation or dependence
is any statistical relationship, whether causal or not, between two random
variables or bivariate data. Although in the broadest sense, "correlation" may
indicate any type of association, in statistics it usually refers to the degree to
which a pair of variables are linearly related. Familiar examples of dependent
phenomena include the correlation between the height of parents and their
offspring, and the correlation between the price of a good and the quantity the
consumers are willing to purchase, as it is depicted in the so-called demand curve.
REGRESSION:
Regression analysis is a statistical method that shows the
relationship between two or more variables. Usually expressed in a graph, the
method tests the relationship between a dependent variable against independent
variables. Typically, the independent variable(s) changes with the dependent
variable(s) and the regression analysis attempts to answer which factors matter
most to that change. The most commonly used techniques for investigating the
relationship between two quantitative variables are correlation and linear
regression. Correlation quantifies the strength of the linear relationship between
a pair of variables, whereas regression expresses the relationship in the form of
an equation. For example, in patients attending an accident and emergency unit
(A&E), we could use correlation and regression to determine whether there is a
relationship between age and urea level and whether the level of urea can be
predicted for a given age.

SCATTER DIAGRAM:
When investigating a relationship between two variables, the
first step is to show the data values graphically on a scatter diagram. Consider the
data given in Table Table1.1. These are the ages (years) and the logarithmically
transformed admission serum urea (natural logarithm [ln] urea) for 20 patients
attending an A&E. The reason for transforming the urea levels was to obtain a
more Normal distribution. The scatter diagram for ln urea and age The above
image suggests there is a positive linear relationship between these variables. This
is the product moment correlation coefficient.
CORRELATION AND REGRESSION ANALYSIS:

DO YOU USE ATM CARD/s?

DO YOU USE ATM CARD/s?

2.5
2
2

1.5
1 1
1

0.5

0
0 0.5 1 1.5 2 2.5

In this study we have received 120 responses for each

question, the correlation analysis for this question we get -0.019279314 by giving
the value 1 for yes and no for 2. The Regression value of this question is -
0.00877193.

DO YOU USE YOUR PARENTS ATM CARD/s?

DO YOU USE YOUR PARENTS ATM

CARD/s?
2.5
2
2
1.5
1 1
1
0.5
0
0 0.5 1 1.5 2 2.5
 The correlation analysis for this question we get -
0.091287093 by giving the value 1 for yes and no for 2. The Regression value of
this question is -0.016666667.

DO YOU USE A CREDIT CARD?

DO YOU USE A CREDIT CARD?

2.5
2 2
2

1.5
1
1

0.5

0
0 0.5 1 1.5 2 2.5

The correlation analysis for this question we get 0.055830865

by giving the value 1 for yes and no for 2. The Regression value of this question
is 0.011494253.

DO YOU OWN A MOBILE PHONE?

DO YOU OWN A MOBILE PHONE?

2.5
2 2
2

1.5
1
1

0.5

0
0 0.5 1 1.5 2 2.5
 The correlation analysis for this question we get 0.2 by giving
the value 1 for yes and no for 2. The Regression value of this question is
0.439568355.

DO YOU OWN A LAPTOP?

DO YOU OWN A LAPTOP?

2.5
2 2
2

1.5
1
1

0.5

0
0 0.5 1 1.5 2 2.5

The correlation analysis for this question we get 0.193300743

by giving the value 1 for yes and no for 2 were the calculation was in positive.
The Regression value of this question is 0.045454545.

ARE YOU A MEMBER OF ANY SOCIAL NETWORKING SITE?

ARE YOU A MEMBER OF ANY SOCIAL

NETWORKING SITE?
2.5
2
1.5
1
0.5
0
0 0.5 1 1.5 2 2.5
 The correlation analysis for this question we get 0.253587225
by giving the value 1 for yes and no for 2 where the calculation was in negative.
The Regression value of this question is -0.013513514.

DO YOU USE MOBILE/TELEPHONE BANKING?

DO YOU USE MOBILE/TELEPHONE BANKING?

2.5
2 2
2

1.5
1 1
1

0.5

0
0 0.5 1 1.5 2 2.5

The correlation analysis for this question we get 0.173291748

by giving the value 1 for yes and no for 2 where the calculation was in negative.
The Regression value of this question is -0.008928571.
PRIORITISE THE FOLLOWING REASONS FOR USING ATM's IN ORDER
OF THEIR IMPORTANCE

PRIORITISE THE FOLLOWING REASONS FOR USING

ATM's IN ORDER OF THEIR IMPORTANCE
( HIGHEST =1 TO LOWEST =4) [TO AVOID QUEUE AT
TELLER COUNTERS]
4.5 4
4
3.5 3
3
2.5 2
2
1.5 1 1
1
0.5
0
0 0.5 1 1.5 2 2.5

The correlation analysis for this question we get -

0.097032648 by giving the value 1 for yes and no for 2 where the calculation
was in negative. The Regression value of this question is -0.0082297
PRIORITISE THE FOLLOWING REASONS FOR USING ATM's IN ORDER OF THEIR
IMPORTANCE
( HIGHEST =1 TO LOWEST =4) [AVOID NEEDLESSLY CARRYING CASH]

PRIORITISE THE FOLLOWING REASONS FOR USING

ATM's IN ORDER OF THEIR IMPORTANCE
( HIGHEST =1 TO LOWEST =4) [TO AVOID QUEUE AT
TELLER COUNTERS]
6 4
4 3
2
2 1 1

0
0 0.5 1 1.5 2 2.5

The correlation analysis for this question we get -

0.004552567 by giving the value 1 for yes and no for 2 where the calculation
was in negative. The Regression value of this question is -0.000407609.

PRIORITISE THE FOLLOWING REASONS FOR USING ATM's IN ORDER OF THEIR

IMPORTANCE
( HIGHEST =1 TO LOWEST =4) [TO MAKE TRANSACTIONS DURING 2N BANKING
HOURS]

PRIORITISE THE FOLLOWING REASONS FOR USING

ATM's IN ORDER OF THEIR IMPORTANCE
( HIGHEST =1 TO LOWEST =4) [MOST OF THE TIME
YOU VISIT MERCHANTS WITH POINT OF SALES]
5 4
4 3
3 2 2
2 1
1
0
0 0.5 1 1.5 2 2.5
 The correlation analysis for this question we get 0.082082588 by giving
the value 1 for yes and no for 2 where the calculation was in positive. The
Regression value of this question is 0.007098492

HOW OFTEN DO YOU USE THE ATM CARD?

HOW OFTEN DO YOU USE THE ATM CARD?

5
4
4
3 3
3
2
2

0
0 0.5 1 1.5 2 2.5

The correlation analysis for this question we get 0.098890067 by giving the value
1 for yes and no for 2 where the calculation was in positive. The Regression value
of this question is 0.014986376
CONCLUSION:
In conclusion, the information presented above gives an
outline of correlation and regression analysis and how it is used in the context of
a bank survey. Regression analysis aids in establishing the link between the
dependent variable and independent variables while correlation analysis
evaluates the strength of the linear association between two variables. Income,
age, account type, customer happiness, and response to banking services are
among the survey data analysed in the information. Both correlation and simple
linear regression can be used to examine the presence of a linear relationship
between two variables providing certain assumptions about the data are satisfied.
The results of the analysis, however, need to be interpreted with care, particularly
when looking for a causal relationship or when using the regression equation for
prediction. Multiple and logistic regression will be the subject of future reviews.