American Association of Individual Investors (AAII) On-Line Discount Broker Surv mbers were asked to rate the quality of the speed of execution with their broker a ponses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satis culating a weighted average of the scores provided by each respondent. A portion Brokerage Scottrade, Inc.
American Association of Individual Investors (AAII) On-Line Discount Broker Surv mbers were asked to rate the quality of the speed of execution with their broker a ponses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satis culating a weighted average of the scores provided by each respondent. A portion Brokerage Scottrade, Inc.
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
Question
Please answer letters b-e.
Transcribed Image Text: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 (AAII website, February 7, 2012).
Brokerage
Speed
Satisfaction
Scottrade, Inc.
3.9
3.5
Charles Schwab
3.0
3.3
Fidelity Brokerage Services
2.5
2.2
TD Ameritrade
2.7
2.6
E*Trade Financial
3.2
3.5
Vanguard Brokerage Services
3.4
3.0
USAA Brokerage Services
2.7
3.1
Thinkorswim
3.7
3.8
Wells Fargo Investments
3.4
3.0
Interactive Brokers
3.9
3.9
Zecco.com
3.5
3.9
Transcribed Image Text:A
b. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables?
The scatter diagram indicates a positive
linear relationship between x = speed of execution rating and y = overall satisfaction rating for electronic
trades.
c. Develop the least squares estimated regression equation. Enter negative value as negative number.
Satisfaction =
0.9206 +
0.7199 Speed (to 4 decimals)
d. Provide an interpretation for the slope of the estimated regression equation.
The slope of the estimated regression line is approximately
0.7199 (to 4 decimals). So, a one unit increase
v in the speed of execution rating will
increase the overall satisfaction rating by approximately
0.7 points (to 1 decimal).
e. Suppose Fidelity Brokerage Services 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 2.5 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?
(to 3 decimals)
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