Event Title

The Role of Legal Tender on Risk Premium in Retail Business

Presenter Information

Tawakalitu Olanigbogbo, Minnesota State University, Mankato

Location

CSU Ballroom

Start Date

11-4-2017 2:00 PM

End Date

11-4-2017 3:30 PM

Student's Major

Economics

Student's College

Social and Behavioral Sciences

Mentor's Name

Ishuan Li

Mentor's Department

Economics

Mentor's College

Social and Behavioral Sciences

Second Mentor's Name

Marie Cato

Second Mentor's Department

Anthropology

Second Mentor's College

Social and Behavioral Sciences

Description

This research project examines the role of legal tender accepted at a major retail business in the United States, Sam’s Club, on risk premia. Legal tender types play a significant role on net cash flow, therefore net income and solvency. As technology improves, credit and debit cards, have become common payment methods beyond cash and checks. I examine how retail sales of types of goods are correlated with methods of payment. This project uses a large dataset comprising membership purchases of itemized goods at all retail stores of Sam’s Club in the United States, it examines the data through visualization and prediction models using IBM software Watson. The findings of this project can provide insights on managing risks to major retailers such as Sam’s Club.