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
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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?
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