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.+ Brokerage Scottrade, Inc. Charles Schwab Fidelity Brokerage Services TD Ameritrade E*Trade Financial Vanguard Brokerage Services USAA Brokerage Services Thinkorswim Wells Fargo Investments Interactive Brokers Zecco.com Speed 3.4 3.3 3.4 3.6 3.2 3.8 3.8 2.6 2.7 4.0 2.5 Satisfaction 3.5 3.4 3.9 3.7 2.9 2.8 3.6 2.6 2.3 4.0 2.5

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The American Association of Individual Investors (AAII) Online Discount Broker Survey gathers insights from members regarding their experiences with discount brokers. Participants in the survey were asked to evaluate both the speed of execution with their broker and their overall satisfaction with electronic trades. The potential responses (scores) included: no opinion (0), unsatisfied (1), somewhat satisfied (2), satisfied (3), and very satisfied (4). Each broker's scores were computed using a weighted average of individual respondent scores. Below are the summarized results from the survey:

| Brokerage                     | Speed | Satisfaction |
|-------------------------------|-------|--------------|
| Scottrade, Inc.               | 3.4   | 3.5          |
| Charles Schwab                | 3.3   | 3.4          |
| Fidelity Brokerage Services   | 3.4   | 3.9          |
| TD Ameritrade                 | 3.6   | 3.7          |
| E*Trade Financial             | 3.2   | 2.9          |
| Vanguard Brokerage Services   | 3.8   | 2.8          |
| USAA Brokerage Services       | 3.8   | 3.6          |
| Thinkorswim                   | 2.6   | 2.6          |
| Wells Fargo Investments       | 2.7   | 2.3          |
| Interactive Brokers           | 4.0   | 4.0          |
| Zecco.com                     | 2.5   | 2.5          |

Interactive Brokers received the highest scores for both speed and satisfaction, each attaining a perfect score of 4.0. In contrast, Zecco.com had the lowest scores in both categories, each at 2.5. This table provides valuable insights into customer perceptions of speed and satisfaction for each brokerage.
Transcribed Image Text:The American Association of Individual Investors (AAII) Online Discount Broker Survey gathers insights from members regarding their experiences with discount brokers. Participants in the survey were asked to evaluate both the speed of execution with their broker and their overall satisfaction with electronic trades. The potential responses (scores) included: no opinion (0), unsatisfied (1), somewhat satisfied (2), satisfied (3), and very satisfied (4). Each broker's scores were computed using a weighted average of individual respondent scores. Below are the summarized results from the survey: | Brokerage | Speed | Satisfaction | |-------------------------------|-------|--------------| | Scottrade, Inc. | 3.4 | 3.5 | | Charles Schwab | 3.3 | 3.4 | | Fidelity Brokerage Services | 3.4 | 3.9 | | TD Ameritrade | 3.6 | 3.7 | | E*Trade Financial | 3.2 | 2.9 | | Vanguard Brokerage Services | 3.8 | 2.8 | | USAA Brokerage Services | 3.8 | 3.6 | | Thinkorswim | 2.6 | 2.6 | | Wells Fargo Investments | 2.7 | 2.3 | | Interactive Brokers | 4.0 | 4.0 | | Zecco.com | 2.5 | 2.5 | Interactive Brokers received the highest scores for both speed and satisfaction, each attaining a perfect score of 4.0. In contrast, Zecco.com had the lowest scores in both categories, each at 2.5. This table provides valuable insights into customer perceptions of speed and satisfaction for each brokerage.
**Transcription:**

(e) Suppose Thinkorswim 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 2.6 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? (Round your answer to one decimal place.)

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Transcribed Image Text:**Transcription:** (e) Suppose Thinkorswim 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 2.6 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? (Round your answer to one decimal place.) [Text box for answer]
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