Question 3: The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences with electronic trades handled by discount brokers. As part of the survey, members were asked to rate their satisfaction with the trade price and the speed of execution, as well as provide an overall satisfaction rating. 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 computing a weighted average of the scores provided by each respondent. A portion of the survey results follow (AAII web site). Satisfaction Satisfaction with Overall Satisfaction Brokerage with Trade Speed of with Electronic Trades Price Execution Scottrade, Inc. 3.4 3.4 3.5 Charles Schwab 3.2 3.3 3.4 Fidelity Brokerage Services 3.1 3.4 3.9 TD Ameritrade 2.9 3.6 3.7 ETrade Financial 2.9 3.2 2.9 (Not listed) 2.5 3.2 2.7 Vanguard Brokerage Services 2.6 3.8 2.8 USAA Brokerage Services 2.4 3.8 3.6 Thinkorowim 2.6 2.6 2.6 Wells Fargo Investments 2.3 2.7 2.3 Interactive Brokers 3.7 4.0 4.0 Zecco.com 2.5 2.5 2.5 Eitstrade Securities 3.0 3.0 4.0 Banc of America Investment Services 4.0 1.0 2.0 Your Tasks: a) Develop an estimated regression equation using trade price and speed of execution to predict overall satisfaction with the broker. Interpret the coefficient of determination. b) Use the t test to determine the significance of each independent variable. What are your conclusions at the 0.05 level of significance? c) Interpret the estimated regression parameters. Are the relationships indicated by these estimates what you would expect?
Question 3: The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences with electronic trades handled by discount brokers. As part of the survey, members were asked to rate their satisfaction with the trade price and the speed of execution, as well as provide an overall satisfaction rating. 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 computing a weighted average of the scores provided by each respondent. A portion of the survey results follow (AAII web site). Satisfaction Satisfaction with Overall Satisfaction Brokerage with Trade Speed of with Electronic Trades Price Execution Scottrade, Inc. 3.4 3.4 3.5 Charles Schwab 3.2 3.3 3.4 Fidelity Brokerage Services 3.1 3.4 3.9 TD Ameritrade 2.9 3.6 3.7 ETrade Financial 2.9 3.2 2.9 (Not listed) 2.5 3.2 2.7 Vanguard Brokerage Services 2.6 3.8 2.8 USAA Brokerage Services 2.4 3.8 3.6 Thinkorowim 2.6 2.6 2.6 Wells Fargo Investments 2.3 2.7 2.3 Interactive Brokers 3.7 4.0 4.0 Zecco.com 2.5 2.5 2.5 Eitstrade Securities 3.0 3.0 4.0 Banc of America Investment Services 4.0 1.0 2.0 Your Tasks: a) Develop an estimated regression equation using trade price and speed of execution to predict overall satisfaction with the broker. Interpret the coefficient of determination. b) Use the t test to determine the significance of each independent variable. What are your conclusions at the 0.05 level of significance? c) Interpret the estimated regression parameters. Are the relationships indicated by these estimates what you would expect?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Topic Video
Question
Please help me with the question below

Transcribed Image Text:Question 3:
The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls
members on their experiences with electronic trades handled by discount brokers. As part of
the survey, members were asked to rate their satisfaction with the trade price and the speed
of execution, as well as provide an overall satisfaction rating. 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 computing a weighted average of
the scores provided by each respondent. A portion of the survey results follow (AAII web
site).
Satisfaction
Satisfaction with
Overall Satisfaction
Brokerage
with Trade
Speed of
with Electronic Trades
Price
Execution
Scottrade, Inc.
3.4
3.4
3.5
Charles Schwab
3.2
3.3
3.4
Fidelity Brokerage Services
3.1
3.4
3.9
TD Ameritrade
2.9
3.6
3.7
ETrade Financial
2.9
3.2
2.9
(Not listed)
2.5
3.2
2.7
Vanguard Brokerage Services
2.6
3.8
2.8
USAA Brokerage Services
2.4
3.8
3.6
Thinkorowim
2.6
2.6
2.6
Wells Fargo Investments
2.3
2.7
2.3
Interactive Brokers
3.7
4.0
4.0
Zecco.com
2.5
2.5
2.5
Eitstrade Securities
3.0
3.0
4.0
Banc of America Investment Services
4.0
1.0
2.0
Your Tasks:
a) Develop an estimated regression equation using trade price and speed of execution to
predict overall satisfaction with the broker. Interpret the coefficient of determination.
b) Use the t test to determine the significance of each independent variable. What are your
conclusions at the 0.05 level of significance?
c) Interpret the estimated regression parameters. Are the relationships indicated by these
estimates what you would expect?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 8 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON

The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman

Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman