were no opinion (0). unsatisfied (1). somevhat satisfied (2). satisfied (3). and very satisfied (4). For each broker, summary scores were computed by computing a veighted average of the scores provided by each respondent. A pertion of the survey results follow (AAI web site). (Let x, represent satisfaction with trade price. x, represent satisfaction with speed of ecution, and y represent overall satisfaction with electronic trades.) Satisfaction with with Trade Price Speed of Execution with Electronic Trades Satisfaction Overall Satisfaction Brokerage Scottrade. Ine. 24 3.4 2.5 Charles Schab 3.2 3.3 3.4 Fidelity Brekerage Services 3.1 3.4 3.9 TO Ameritrade 2.9 3.6 2.7 E"Trade Financial 2.9 3.2 2.9 (Net lated 2.5 3.2 2.7 Vanguard Brokerape Services 26 3.8 2.8 USAA Brokerage Services 24 3.8 3.6 Thinkorsvim 2.6 2.6 2.6 Wells Farge Investments 2.3 2.7 2.3 Interactive Brokers 3.7 4.0 4.0 Zecce.com 2.5 2.5 2.5 Firstrade Securities 2.0 3.0 4.0 Bank of America Investment Services 4.0 1.0 20 (a) Develop an estimated regression equation using trade price and speed of execution to predict the overal satisfaction with the broker. (Round your numerical values to four decimal places.) Interpret the coefficient of determination. (Round your ansver to te decimal places.) This regression model explains approximately x % 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. Test whether the regression parameter , is equal to zero. Find the prvalue. (Round your answer to four decimal places.) Pvalue Jx What is the conelusion for the test at the 0.05 level of significance? o we fail to reject H. We cannet cenclude that there isa relationship betreen satisfaction with trade price and everall satisfaction with the electronic trade. lo we reject H. We cannet eonclude that there isa relationship beteen satisfaction with trade price and everal satisfaction with the electroenic trade. we reject H We can conclude that there is a relationship between satisfaction with trade price and everall satisfaction with the electronic trade. O we fail to reject H We can conclude that there is a relationship betvween satisfaction with trade price and overall satisfaction with the electronic trade. Test whether the regression parameter , is equal to zero. Find the prvalue. (Reund your answer to four decimal places.) pvalue

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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). (Let x, represent satisfaction with trade price, x, represent satisfaction with speed of
execution, and y represent overall satisfaction with electronic trades.)
Satisfaction
with Trade Price
Satisfaction with
Brokerage
Overall Satisfaction
with Electronic Trades
Speed of 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
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
Bank of America Investment Services
4.0
1.0
2.0
(a) Develop an estimated regression equation using trade price and speed of execution to predict the overall satisfaction with the broker. (Round your numerical values to four decimal places.)
Interpret the coefficient of determination. (Round your answer to two decimal places.)
This regression model explains approximately
X % 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.
Test whether the regression parameter 8, is equal to zero.
Find the p-value. (Round your answer to four decimal places.)
p-value =
What is the conclusion for the test at the 0.05 level of significance?
O we fail to reject H.. We cannot conclude that there is a relationship between satisfaction with trade price and overall satisfaction with the electronic trade.
O We reject H,. We cannot conclude that there is a relationship between satisfaction with trade price and overall satisfaction with the electronic trade.
O We reject H. We can conclude that there is a relationship between satisfaction with trade price and overall satisfaction with the electronic trade.
O We fail to reject H. We can conclude that there is a relationship between satisfaction with trade price and overall satisfaction with the electronic trade.
Test whether the regression parameter 6, is equal to zero.
Find the p-value. (Round your answer to four decimal places.)
p-value =
Transcribed Image Text: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). (Let x, represent satisfaction with trade price, x, represent satisfaction with speed of execution, and y represent overall satisfaction with electronic trades.) Satisfaction with Trade Price Satisfaction with Brokerage Overall Satisfaction with Electronic Trades Speed of 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 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 Bank of America Investment Services 4.0 1.0 2.0 (a) Develop an estimated regression equation using trade price and speed of execution to predict the overall satisfaction with the broker. (Round your numerical values to four decimal places.) Interpret the coefficient of determination. (Round your answer to two decimal places.) This regression model explains approximately X % 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. Test whether the regression parameter 8, is equal to zero. Find the p-value. (Round your answer to four decimal places.) p-value = What is the conclusion for the test at the 0.05 level of significance? O we fail to reject H.. We cannot conclude that there is a relationship between satisfaction with trade price and overall satisfaction with the electronic trade. O We reject H,. We cannot conclude that there is a relationship between satisfaction with trade price and overall satisfaction with the electronic trade. O We reject H. We can conclude that there is a relationship between satisfaction with trade price and overall satisfaction with the electronic trade. O We fail to reject H. We can conclude that there is a relationship between satisfaction with trade price and overall satisfaction with the electronic trade. Test whether the regression parameter 6, is equal to zero. Find the p-value. (Round your answer to four decimal places.) p-value =
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