Are the following answers correct?Question: 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 the survey results follow (AAII web site, February 7, 2012). BrokerageSatisfaction withTrade PriceSatisfaction withSpeed of ExecutionOverall Satisfaction withElectronic TradesScottrade, Inc.3.43.43.5Charles Schwab3.23.33.4Fidelity Brokerage Services3.13.43.9TD Ameritrade2.93.63.7E*Trade Financial2.93.22.9(Not listed)2.53.22.7Vanguard Brokerage Services2.63.82.8USAA Brokerage Services2.43.83.6Thinkorswim2.62.62.6Wells Fargo Investments2.32.72.3Interactive Brokers3.74.04.0Zecco.com2.52.52.5Firstrade Securities3.03.04.0Banc of America Investment Services4.01.02.0 (a) Develop an estimated regression equation using trade price and speed of execution to predict overall satisfaction with the broker.Let x1 represent satisfaction with Trade Price.Let x2 represent satisfaction with speed of execution.If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)0.5580 x1 +-0.7835 +What is the coefficient of determination?If required, round your answers to four decimal places.0.50870.7342 x2Interpret the coefficient of determination. If required, round your answer to one decimal places.The regression model explains approximatelyWe canmade.50.9 % of the variation in the values of overall satisfaction in the sample.(b) Use the t test to determine the significance of each independent variable. What are your conclusions at the 0.05 level of significance?We canconclude that B1 = 0. That is, there isconclude that B₂ = 0. That is, there is✓a relationship between satisfaction with trade price and overall satisfaction with the electronic trade.a relationship between satisfaction with speed of execution and overall satisfaction with the electronic (c) Interpret the estimated regression parameters. Are the relationships indicated by these estimates what you would expect?(i) Bo is the estimated overall satisfaction with the electronic trade when satisfaction with trade price and speed of execution are both 0. B1 is the estimated change in overall satisfaction with theelectronic trade if satisfaction with trade price is held constant and there is a 1 point increase in satisfaction with speed of execution. B₂ is the estimated change in overall satisfaction with theelectronic trade if satisfaction with speed of execution is held constant and there is a 1 point increase in satisfaction with trade price.(ii) Bo is the estimated overall satisfaction with the electronic trade when satisfaction with trade price and speed of execution are both 0. B1 is the estimated change in overall satisfaction with theelectronic trade if satisfaction with speed of execution is held constant and there is a 1 point increase in satisfaction with trade price. B2 is the is the estimated change in overall satisfaction with theelectronic trade if satisfaction with trade price is held constant and there is a 1 point increase in satisfaction with speed of execution.(iii) Bo is the estimated overall satisfaction with the electronic trade when satisfaction with trade price and speed of execution are both 1. B1 is the estimated change in overall satisfaction with theelectronic trade if satisfaction with speed of execution is held constant and there is a 1 point increase in satisfaction with trade price. B₂ is the is the estimated change in overall satisfaction with theelectronic trade if satisfaction with trade price is held constant and there is a 1 point increase in satisfaction with speed of execution.(iv) Bo is the estimated overall satisfaction with the electronic trade when satisfaction with trade price and speed of execution are both 1. B1 is the estimated change in overall satisfaction with theelectronic trade if satisfaction with trade price is held constant and there is a 1 point increase in satisfaction with speed of execution. B2 is the estimated change in overall satisfaction with theelectronic trade if satisfaction with speed of execution is held constant and there is a 1 point increase in satisfaction with trade price.Option (ii)(d) Finger Lakes Investments has developed a new electronic trading system and would like to predict overall customer satisfaction assuming they can provide satisfactory levels of service levels (3) for bothtrade price and speed of execution. Use the estimated regression equation developed in part (a) to predict overall satisfaction level for Lakes Investments if they can achieve these performance levels.If required, round your answer to one decimal places. Do not round intermediate calculations.3.1

Hint: The R2 is the coefficient of determination. It explains the percent variation in the dependent…

Question: 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 the survey results follow (AAII web site, February 7, 2012). Brokerage Satisfaction with Trade Price Satisfaction with Speed of Execution Overall Satisfaction with Electronic Trades 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 E*Trade 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 Thinkorswim 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 Firstrade Securities 3.0 3.0 4.0 Banc of America Investment Services 4.0 1.0 2.0

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

Brokerage	Satisfaction with Trade Price	Satisfaction with Speed of Execution	Overall Satisfaction with Electronic Trades
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
E*Trade 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
Thinkorswim	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
Firstrade Securities	3.0	3.0	4.0
Banc of America Investment Services	4.0	1.0	2.0