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
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. (Letx1represent satisfaction with trade price,x2represent satisfaction with speed of execution, andyrepresent overall satisfaction with electronic trades.)
Brokerage | Satisfaction with Trade Price | Satisfaction with Speed of Execution | Overall Satisfaction with Electronic Trades |
---|---|---|---|
Brokerage 1 | 3.5 | 3.5 | 3.6 |
Brokerage 2 | 3.1 | 3.2 | 3.5 |
Brokerage 3 | 3.2 | 3.5 | 3.9 |
Brokerage 4 | 2.8 | 3.7 | 3.6 |
Brokerage 5 | 2.8 | 3.1 | 3.0 |
Brokerage 6 | 2.4 | 3.1 | 2.8 |
Brokerage 7 | 2.7 | 3.7 | 2.7 |
Brokerage 8 | 2.3 | 3.7 | 3.7 |
Brokerage 9 | 2.5 | 2.7 | 2.7 |
Brokerage 10 | 2.4 | 2.8 | 2.4 |
Brokerage 11 | 3.8 | 4.0 | 4.0 |
Brokerage 12 | 2.4 | 2.6 | 2.4 |
Brokerage 13 | 3.1 | 3.1 | 4.0 |
Brokerage 14 | 4.0 | 0.9 | 2.1 |
(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
_____% of the variation in the values of overall satisfaction in the sample.
(b)Use thettest to determine the significance of each independent variable.Test whether the regression parameter1is equal to zero.Find thep-value. (Round your answer to four decimal places.)
p-value = ____________
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