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2- The American Association of Individual Investors (AAII) online Discount Broker Survey polls members on their experiences with electronic trades handled by discount brokers. As
2- The American Association of Individual Investors (AAII) online 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 an the speed of execution, as well as provide and overall satisfaction rating. For each broker, summary scores were computed by computing a weighted average of the scores provided by each respondent. A data is provided in the sheet Question 2, in your (BB a) develop and 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 at a=.01, what is your conclusion? c) Based on your conclusion in part b, if you decide to exclude or include a variable, rerun your regression and provide a new one. d) If you keep one independent variable, it's recommended to develop quadratic equation to find out whether nonlinear equation provides better prediction or not? e) Provide your analysis based on R\" values and its meaning for all regressions you develop. Overall Satisfaction Satisfaction with Satisfaction with Brokerage Trade Price Speed of Execution with Electronic Trades 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 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 Banc of America Investment Ser 4.0 1.0 2.0
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