
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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Transcribed Image Text:You may need to use the appropriate technology to answer this question.
An investors association's 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. (Let x, represent satisfaction with trade price, x, represent satisfaction with speed of execution, and y represent overall satisfaction with electronic trades.)
Brokerage
Satisfaction with Trade Price
Satisfaction with Speed of Execution
Overall Satisfaction with Electronic Trades
Brokerage 1
3.3
3.5
3.4
Brokerage 2
3.3
3.2
3.3
Brokerage 3
3.0
3.5
3.9
Brokerage 4
3.0
3.5
3.6
Brokerage 5
2.8
3.1
2.8
Brokerage 6
2.4
3.3
2.8
Brokerage 7
2.5
3.9
2.9
Brokerage 8
2.3
3.7
3.7
Brokerage 9
2.7
2.5
2.5
Brokerage 10
2.4
2.6
2.2
Brokerage 11
3.6
4.0
4.0
Brokerage 12
2.6
2.4
2.4
Brokerage 13
3.1
3.1
4.0
Brokerage 14
4.0
1.1
1.9
(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.)

Transcribed Image Text:(a) Devekop an estimated regression equation using trede price and speed of execution to predict the overall satisfaction with the broker. (Round your numerical values to four decimal pleces.)
Interpret the coeffidient of determination. (Round your answer to two decimal places.)
This regressikon model explains approximately
|% of the variation in the velues of overall setisfaction in the sample.
(b) Use the e test to determine the significence cf each independent varieble
Test whether the regression parameter , s 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 lavel of significanca?
O we tail to reject Ne We cannot conclude thet there is a reletionship between satistaction with trade price and overal satistaction with the electronic trade.
O We fail to reject He We can condude that there is e 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 averall satisfaction with the electronic trade.
O We reject Hg. We can conclude that there is a relationship between satisfaction with trade price and overal satisfaction with the elactronic trade.
Test whether the ragression parameter s 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 Wa fail to rejact H. We can condude that there is a relationship between satisfaction with spoed of axacution and overall satisfaction with the dectranic trade.
O We reject H. We cannot condude that there is a relationship botween satisfaction with spoed of execution and overall satisfaction with the clectronic trade.
O We reject H, We can conclude that there is a reletiorahip between setisfaction with speed of ececution and overall setisfaction with the electronic trade.
O We fall to reject H. We cannot conclude that there is a relationship between satisfaction with speed of execution and overall satistaction with the electroric trade.
(c) Interpret the estimated regression parameters.
(e) Interpret the estimated regression parameters.
A. is our estimate of the overall satisfaction with the electronkc trace when satisfaction with trade prike and satisfaction with speed of aKccution are both-Soloct . d, is our estimate of
change in overall satisfaction with the clectronic trade if we hold satisfaction with Seloct
estimane ef change in averall satisfaction with the electranic trade if we hald satisfaction with -Seec
-Select
v constant and have a 1 point increase in satisfaction withSoloct
constant and have a 1 point inerease in satisfaction with
s our
Are the relationships indicated by these estimates what you would expect?
O ves
O No
(d) An investment company has developed a new ekctronic trading system and would like to predict overall customer satisfaction assuming they can provide satisfactory service leveis (3) for
both trade price and speed of execution. Use the estimated regression equation developed in part (a) to predict the overall satisfaction level for the investment company ir they can achieve
these performance levels. (Round your answer to one decimal place.)
(e) What concerms (If any) do you have with regard to the possible responses the respondents could select on the survey?
This answer haa not bean gradad yat.
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At the .01 level, is the overall regression significant? Explain by showing the relevant value(s)
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At the .01 level, is the overall regression significant? Explain by showing the relevant value(s)
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