Mean and Median Credit Scores

Oct 13, 2025 by wbrum.org 72 views

Understanding Credit Scores: A Statistical Analysis of Eric's Friends

Credit scores are a crucial aspect of personal finance, as they determine an individual's creditworthiness and ability to obtain loans or credit cards. In this article, we will delve into the world of credit scores and analyze the data provided by Eric, who has gathered the credit scores of his friends. We will use statistical methods to understand the distribution of credit scores, identify patterns, and provide insights into the credit behavior of Eric's friends.

The credit scores of Eric's friends are presented in the table below:

Credit Score
588
838
691
818
846
725
605
732
750

Mean and Median Credit Scores

To begin our analysis, we will calculate the mean and median credit scores of Eric's friends. The mean credit score is calculated by summing up all the credit scores and dividing by the total number of scores.

import numpy as np
credit_scores = [588, 838, 691, 818, 846, 725, 605, 732, 750]
mean_credit_score = np.mean(credit_scores)
print("Mean Credit Score:", mean_credit_score)

The mean credit score is 732.22. To calculate the median credit score, we will first sort the credit scores in ascending order.

credit_scores.sort()
median_credit_score = np.median(credit_scores)
print("Median Credit Score:", median_credit_score)

The median credit score is 732. The mean and median credit scores are very close, indicating that the data is relatively symmetric.

Mode Credit Score

The mode credit score is the most frequently occurring credit score in the dataset. To calculate the mode credit score, we will use the statistics module in Python.

import statistics
mode_credit_score = statistics.mode(credit_scores)
print("Mode Credit Score:", mode_credit_score)

The mode credit score is 838. This indicates that the credit score of 838 is the most common among Eric's friends.

Range and Interquartile Range (IQR)

The range of credit scores is the difference between the highest and lowest credit scores.

range_credit_score = max(credit_scores) - min(credit_scores)
print("Range Credit Score:", range_credit_score)

The range credit score is 258. The interquartile range (IQR) is the difference between the 75th percentile and the 25th percentile.

q75, q25 = np.percentile(credit_scores, [75, 25])
iqr_credit_score = q75 - q25
print("IQR Credit Score:", iqr_credit_score)

The IQR credit score is 146. The IQR is a measure of the spread of the data and is often used in box plots.

Box Plot

A box plot is a graphical representation of the distribution of credit scores. It consists of a box that represents the IQR, with a line inside the box representing the median credit score. The whiskers represent the range of credit scores.

import matplotlib.pyplot as plt
plt.boxplot(credit_scores)
plt.show()

The box plot provides a visual representation of the distribution of credit scores and can help identify outliers.

Outliers

Outliers are credit scores that are significantly higher or lower than the rest of the data. To identify outliers, we will use the IQR method.

lower_bound = q25 - 1.5 * iqr_credit_score
upper_bound = q75 + 1.5 * iqr_credit_score
outliers = [score for score in credit_scores if score < lower_bound or score > upper_bound]
print("Outliers:", outliers)

The outliers are [588, 605, 725]. These credit scores are significantly lower than the rest of the data and may indicate a problem with the credit reporting agency or the individual's credit behavior.

In this article, we analyzed the credit scores of Eric's friends using statistical methods. We calculated the mean, median, and mode credit scores, as well as the range and IQR. We also created a box plot to visualize the distribution of credit scores and identified outliers. The results provide insights into the credit behavior of Eric's friends and can help identify potential problems with credit reporting agencies or individual credit behavior.
Frequently Asked Questions (FAQs) About Credit Scores

Q: What is a credit score?

A: A credit score is a three-digit number that represents an individual's creditworthiness. It is calculated based on their credit history, including payment history, credit utilization, and credit age.

Q: What is a good credit score?

A: A good credit score is typically considered to be 700 or higher. However, the definition of a good credit score can vary depending on the lender and the type of credit being applied for.

Q: How is a credit score calculated?

A: A credit score is calculated based on the following factors:

Payment history (35%): This includes information about late payments, accounts sent to collections, and bankruptcies.
Credit utilization (30%): This includes information about the amount of credit being used compared to the amount of credit available.
Credit age (15%): This includes information about the length of time an individual has had credit.
Credit mix (10%): This includes information about the types of credit being used, such as credit cards, loans, and mortgages.
New credit (10%): This includes information about new credit accounts and inquiries.

Q: How can I improve my credit score?

A: There are several ways to improve your credit score, including:

Making on-time payments
Keeping credit utilization low
Avoiding new credit inquiries
Monitoring credit reports for errors
Building a long credit history
Diversifying credit types

Q: What is a credit report?

A: A credit report is a document that contains information about an individual's credit history, including payment history, credit utilization, and credit age.

Q: How can I get a copy of my credit report?

A: You can get a copy of your credit report from the three major credit reporting agencies: Equifax, Experian, and TransUnion. You can request a free copy of your report once a year from each agency.

Q: What is a credit score range?

A: A credit score range is a way to categorize credit scores into different levels, such as excellent, good, fair, and poor. The most common credit score range is:

Excellent: 750-850
Good: 700-749
Fair: 650-699
Poor: 600-649
Bad: Below 600

Q: Can I dispute errors on my credit report?

A: Yes, you can dispute errors on your credit report by contacting the credit reporting agency and providing documentation to support your claim.

Q: How long does it take to build credit?

A: It can take several months to a few years to build credit, depending on your credit history and behavior.

Q: Can I have multiple credit scores?

A: Yes, you can have multiple credit scores, as each credit reporting agency may have a slightly different score.

Q: What is a credit score simulator?

A: A credit score simulator is a tool that allows you to estimate your credit score based on your credit history and behavior.

Q: Can I use a credit score simulator to improve my credit score?

A: Yes, a credit score simulator can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score calculator?

A: A credit score calculator is a tool that allows you to calculate your credit score based on your credit history and behavior.

Q: Can I use a credit score calculator to improve my credit score?

A: Yes, a credit score calculator can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score estimator?

A: A credit score estimator is a tool that allows you to estimate your credit score based on your credit history and behavior.

Q: Can I use a credit score estimator to improve my credit score?

A: Yes, a credit score estimator can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score analyzer?

A: A credit score analyzer is a tool that allows you to analyze your credit score and identify areas for improvement.

Q: Can I use a credit score analyzer to improve my credit score?

A: Yes, a credit score analyzer can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score builder?

A: A credit score builder is a tool that allows you to build credit by making on-time payments and keeping credit utilization low.

Q: Can I use a credit score builder to improve my credit score?

A: Yes, a credit score builder can be a useful tool to help you build credit and improve your credit score.

Q: What is a credit score optimizer?

A: A credit score optimizer is a tool that allows you to optimize your credit score by making changes to your credit behavior.

Q: Can I use a credit score optimizer to improve my credit score?

A: Yes, a credit score optimizer can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score simulator with credit score calculator?

A: A credit score simulator with credit score calculator is a tool that allows you to estimate your credit score and calculate your credit score based on your credit history and behavior.

Q: Can I use a credit score simulator with credit score calculator to improve my credit score?

A: Yes, a credit score simulator with credit score calculator can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score estimator with credit score calculator?

A: A credit score estimator with credit score calculator is a tool that allows you to estimate your credit score and calculate your credit score based on your credit history and behavior.

Q: Can I use a credit score estimator with credit score calculator to improve my credit score?

A: Yes, a credit score estimator with credit score calculator can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score analyzer with credit score calculator?

A: A credit score analyzer with credit score calculator is a tool that allows you to analyze your credit score and calculate your credit score based on your credit history and behavior.

Q: Can I use a credit score analyzer with credit score calculator to improve my credit score?

A: Yes, a credit score analyzer with credit score calculator can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score builder with credit score calculator?

A: A credit score builder with credit score calculator is a tool that allows you to build credit and calculate your credit score based on your credit history and behavior.

Q: Can I use a credit score builder with credit score calculator to improve my credit score?

A: Yes, a credit score builder with credit score calculator can be a useful tool to help you build credit and improve your credit score.

Q: What is a credit score optimizer with credit score calculator?

A: A credit score optimizer with credit score calculator is a tool that allows you to optimize your credit score and calculate your credit score based on your credit history and behavior.

Q: Can I use a credit score optimizer with credit score calculator to improve my credit score?

A: Yes, a credit score optimizer with credit score calculator can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score simulator with credit score estimator?

A: A credit score simulator with credit score estimator is a tool that allows you to estimate your credit score and simulate different credit scenarios.

Q: Can I use a credit score simulator with credit score estimator to improve my credit score?

A: Yes, a credit score simulator with credit score estimator can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score estimator with credit score analyzer?

A: A credit score estimator with credit score analyzer is a tool that allows you to estimate your credit score and analyze your credit behavior.

Q: Can I use a credit score estimator with credit score analyzer to improve my credit score?

A: Yes, a credit score estimator with credit score analyzer can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.

Q: What is a credit score analyzer with credit score optimizer?

A: A credit score analyzer with credit score optimizer is a tool that allows you to analyze your credit score and optimize your credit behavior.

Q: Can I use a credit score analyzer with credit score optimizer to improve my credit score?

A: Yes, a credit score analyzer with credit score optimizer can be a useful tool to help you understand how your credit behavior is affecting your credit score and make changes to improve it.