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

2. 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

3. 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

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

7. 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

8. 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: 93.92771 -Average Monthly Frequency: 2.792683 -Average Monthly Gross Transactions: $262.92 -Variance of Gross Transactions: 7084.995 -Standard Deviation of Gross Transactions: 84.17241 -Variance of Monthly Frequency: 3.252785 -Standard Deviation of Monthly Frequency: 1.803548 -Based on Sample size of 83/89 = 93% of CMC students would use an ATM machine on CMC’s campus

9. 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: 54.1504 -Average Monthly Frequency: 2.653846 -Average Monthly Gross Transactions: $143.72 -Variance of Gross Transactions: 2463.208 -Standard Deviation of Gross Transactions: 49.63081 -Variance of Monthly Frequency: 2.653846 -Standard Deviation of Monthly Frequency: 1.956259 -Based on Sample size of 53/63 = 84% of Pitzer students would use an ATM machine on CMC’s campus

10. 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: 61.80556 -Average Monthly Frequency: 2.882353 -Average Monthly Gross Transactions: $177.98 -Variance of Gross Transactions: 1974.504 -Standard Deviation of Gross Transactions: 44.43539 -Variance of Monthly Frequency: 12.71301 -Standard Deviation of Monthly Frequency: 3.565531 -Based on Sample size of 36/49 = 73% of Scripps students would use an ATM machine on CMC’s campus

11. 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 $262.92. Net activity: $269,493.00 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 $177.98 Net activity: $122,272.26 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 117.98. Net activity: $111.595.97 The sum clearly exceeds the $50,000 target by Wells Fargo.

12. 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

13. 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 (+)

14. Regression Statistics Multiple R0.385849 R Square0.14888 Adjusted R Square0.122691 Standard Error0.333908 Observations202 ANOVA dfSSMSF Significance F Regression63.8030620.6338445.684961.82E-05 Residual19521.741490.111495 Total20125.54455 Coefficients Standard Errort StatP-valueLower 95%Upper 95% Lower 95.0% Upper 95.0% Intercept0.6565710.0947446.9299175.99E-110.4697160.8434270.4697160.843427 GROSS TRANSACT.-0.000830.000308-2.679990.007992-0.00143-0.00022-0.00143-0.00022 DISTANCE0.0533680.0191892.7811250.0059490.0155230.0912130.0155230.091213 MONTH0.0204530.0148711.3753810.170591-0.008880.049782-0.008880.049782 EMPLOYED-0.060950.050194-1.214250.226119-0.159940.038045-0.159940.038045 NON-CMC0.1611330.0484053.3288610.0010430.0656690.2565970.0656690.256597 LOCATION-0.0240.055675-0.431090.666879-0.13380.085802-0.13380.085802

15. 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

16. Questions?