Would an ATM machine on CMC’s campus be profitable? Joseph Chang Maryan Samson Andrew Yeh

The case against an ATM machine on CMC: -ATM machines at Pomona and Huntley Bookstore do NOT have high volume of activity -Banks speculate that an ATM machine on CMC would be not generate more activity than Pomona or Huntley have thus far -Fundamental part of any deal would necessitate CMC advertising on behalf of Bank’s ATM on- campus to all incoming Freshman classes

The case for an ATM machine on CMC: -Pomona has one -Northern part of CMC is a central point of the rest of the Consortium -Major implication: in addition to CMC students that would use an ATM machine on CMC’s campus— students across Pitzer, Scripps, Harvey Mudd would change their preference to an ATM machine on CMC -Planned growth for Pitzer and CMC campus actually imply higher future potential customers

Data Collection Sample Size: 202 Students (124 Non-CMC, 88 CMC) Online Survey Hand Surveys

The Empirical Case  Assertion: CMC’s ATM machine would not generate $50,000 of monthly activity Data as of May 4, 2009: -Claremont McKenna student body: 1,211 students x (On-campus housing rate): 97% - (CMC student abroad average): 73 students -CMC active student body: 1,102 students -Pitzer student body: 950 students x (On-campus housing rate): 94% - (Pitzer student abroad average): 75 students - active student body : 818 students -Scripps student body: 962 students x (On-campus housing rate): 96% - (Scripps student abroad average): 65 students -Scripps active student body : 859 students

The Empirical Case cont. Summary of Findings: Of the 89 CMC students polled, 83 students said they would use an ATM machine on CMC’s campus -Average Gross Transactions: Average Monthly Frequency: Average Monthly Gross Transactions: $ Variance of Gross Transactions: Standard Deviation of Gross Transactions: Variance of Monthly Frequency: Standard Deviation of Monthly Frequency: Based on Sample size of 83/89 = 93% of CMC students would use an ATM machine on CMC’s campus

The Empirical Case cont. Summary of Findings: Of the 63 Pitzer students polled, 53 students said they would use an ATM machine on CMC’s campus -Average Gross Transactions: Average Monthly Frequency: Average Monthly Gross Transactions: $ Variance of Gross Transactions: Standard Deviation of Gross Transactions: Variance of Monthly Frequency: Standard Deviation of Monthly Frequency: Based on Sample size of 53/63 = 84% of Pitzer students would use an ATM machine on CMC’s campus

The Empirical Case cont. Summary of Findings: Of the 49 Scripps students polled, 36 students said they would use an ATM machine on CMC’s campus -Average Gross Transactions: Average Monthly Frequency: Average Monthly Gross Transactions: $ Variance of Gross Transactions: Standard Deviation of Gross Transactions: Variance of Monthly Frequency: Standard Deviation of Monthly Frequency: Based on Sample size of 36/49 = 73% of Scripps students would use an ATM machine on CMC’s campus

The Empirical Case conclusion. Based on our sample sizes, CMC would have 93% of their active study body using the ATM Machine. 93% of 1,102 would yield 1025 students with an average monthly transaction of $ Net activity: $269, Pitzer would have 84% of their active study body using the ATM Machine. 84% of 818 would yield 687 students with an average monthly transaction of $ Net activity: $122, Scripps would have 73% of their active study body using the ATM Machine. 73% of 859 would yield 627 students with an average monthly transaction of Net activity: $ The sum clearly exceeds the $50,000 target by Wells Fargo.

Limitations of research: -Activity during summer breaks and winter breaks significantly lower -Cannot calculate costs of advertising plan -Surveys approximate transactions— possible inflation -Does not take into account actual logistics of a proposed ATM machine i.e. location, hours, bank, etc. -Does not fully address the behavior—just the numerical data

Research: To identify what factors affect the students of CMC, Pitzer, and Scripps when choosing an ATM machine Hypotheses: - DISTANCE (+) - SCHOOL (+) - GROSS TRANSACTION (+) - FREQUENCY (+) - EMPLOYED (+) - LOCATION (+)

Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations202 ANOVA dfSSMSF Significance F Regression E-05 Residual Total Coefficients Standard Errort StatP-valueLower 95%Upper 95% Lower 95.0% Upper 95.0% Intercept E GROSS TRANSACT DISTANCE MONTH EMPLOYED NON-CMC LOCATION

Application of Findings -Addresses Bank’s Volume Concern -Placement of an ATM on CMC is projected to be more profitable given the factors shown by the regression -Does not Address the problem of School being out for Summer and Winter Break

Questions?