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American Association of Individual Investors (AAII) On-Line Discount Broker Surv mbers were asked to rate the quality of the speed of execution with their broker a ponses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satis culating a weighted average of the scores provided by each respondent. A portion Brokerage Scottrade, Inc.

American Association of Individual Investors (AAII) On-Line Discount Broker Surv mbers were asked to rate the quality of the speed of execution with their broker a ponses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satis culating a weighted average of the scores provided by each respondent. A portion Brokerage Scottrade, Inc.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Please answer letters b-e.

The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences with discount brokers. As part of the survey, members were asked to rate the quality of the speed of execution with their broker as well as provide an overall satisfaction rating for electronic trades. Possible responses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satisfied (3), and very satisfied (4). For each broker summary scores were computed by calculating a weighted average of the scores provided by each respondent. A portion of the survey results follow (AAII website, February 7, 2012). Brokerage Speed Satisfaction Scottrade, Inc. 3.9 3.5 Charles Schwab 3.0 3.3 Fidelity Brokerage Services 2.5 2.2 TD Ameritrade 2.7 2.6 E*Trade Financial 3.2 3.5 Vanguard Brokerage Services 3.4 3.0 USAA Brokerage Services 2.7 3.1 Thinkorswim 3.7 3.8 Wells Fargo Investments 3.4 3.0 Interactive Brokers 3.9 3.9 Zecco.com 3.5 3.9
Transcribed Image Text:The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences with discount brokers. As part of the survey, members were asked to rate the quality of the speed of execution with their broker as well as provide an overall satisfaction rating for electronic trades. Possible responses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satisfied (3), and very satisfied (4). For each broker summary scores were computed by calculating a weighted average of the scores provided by each respondent. A portion of the survey results follow (AAII website, February 7, 2012). Brokerage Speed Satisfaction Scottrade, Inc. 3.9 3.5 Charles Schwab 3.0 3.3 Fidelity Brokerage Services 2.5 2.2 TD Ameritrade 2.7 2.6 E*Trade Financial 3.2 3.5 Vanguard Brokerage Services 3.4 3.0 USAA Brokerage Services 2.7 3.1 Thinkorswim 3.7 3.8 Wells Fargo Investments 3.4 3.0 Interactive Brokers 3.9 3.9 Zecco.com 3.5 3.9
A b. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables? The scatter diagram indicates a positive linear relationship between x = speed of execution rating and y = overall satisfaction rating for electronic trades. c. Develop the least squares estimated regression equation. Enter negative value as negative number. Satisfaction = 0.9206 + 0.7199 Speed (to 4 decimals) d. Provide an interpretation for the slope of the estimated regression equation. The slope of the estimated regression line is approximately 0.7199 (to 4 decimals). So, a one unit increase v in the speed of execution rating will increase the overall satisfaction rating by approximately 0.7 points (to 1 decimal). e. Suppose Fidelity Brokerage Services developed new software to increase their speed of execution rating. If the new software is able to increase their speed of execution rating from the current value of 2.5 to the average speed of execution rating for the other 10 brokerage firms that were surveyed, what value would you predict for the overall satisfaction rating? (to 3 decimals)
Transcribed Image Text:A b. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables? The scatter diagram indicates a positive linear relationship between x = speed of execution rating and y = overall satisfaction rating for electronic trades. c. Develop the least squares estimated regression equation. Enter negative value as negative number. Satisfaction = 0.9206 + 0.7199 Speed (to 4 decimals) d. Provide an interpretation for the slope of the estimated regression equation. The slope of the estimated regression line is approximately 0.7199 (to 4 decimals). So, a one unit increase v in the speed of execution rating will increase the overall satisfaction rating by approximately 0.7 points (to 1 decimal). e. Suppose Fidelity Brokerage Services developed new software to increase their speed of execution rating. If the new software is able to increase their speed of execution rating from the current value of 2.5 to the average speed of execution rating for the other 10 brokerage firms that were surveyed, what value would you predict for the overall satisfaction rating? (to 3 decimals)
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