| (d) | Finger Lakes Investments has developed a new electronic trading system and would like to predict overall customer satisfaction assuming they can provide satisfactory levels of service levels (3) for both trade price and speed of execution. Use the estimated regression equation developed in part (a) to predict overall satisfaction level for Lakes Investments if they can achieve these performance levels. |
| | If required, round your answer to one decimal places. Do not round intermediate calculations. |
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 the survey results follow (AAII website, February 7, 2012). Brokerage Scottrade, Inc. Charles Schwab Fidelity Brokerage Services TD Ameritrade E Trade Financial (Not listed) Vanguard Brokerage Services USAA Brokerage Services Thinkorswim Satisfaction with Satisfaction with Overall Satisfaction with Trade Price Speed of Execution Electronic Trades 3.2 3.1 3.2 3.3 3.1 3.2 3.1 3.3 4.0 2.8 3.5 3.7 2.9 3.2 3.0 2.4 3.2 2.7 2.7 3.8 2.7 2.4 3.7 3.4 2.6 2.6 2.7 2.3 2.7 2.3 3.7 3.9 4.0 Wells Fargo Investments Interactive Brokers Zecco.com Firstrade Securities Banc of America Investment Services 2.5 2.5 2.5 3.0 3.0 3.0 1.0 4.0 2.0 (a) Develop an estimated regression equation using trade price and speed of execution to predict overall satisfaction with the broker. Let xi represent satisfaction with Trade Price. Let x2 represent satisfaction with speed of execution. If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) 9 -0.7835 X 0.5580 X 0.7342 What is the coefficient of determination? If required, round your answers to four decimal places. = + + X2 3.0931 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 the survey results follow (AAII website, February 7, 2012). Brokerage Scottrade, Inc. Charles Schwab Fidelity Brokerage Services TD Ameritrade E Trade Financial (Not listed) Vanguard Brokerage Services USAA Brokerage Services Thinkorswim Satisfaction with Satisfaction with Overall Satisfaction with Trade Price Speed of Execution Electronic Trades 3.2 3.1 3.2 3.3 3.1 3.2 3.1 3.3 4.0 2.8 3.5 3.7 2.9 3.2 3.0 2.4 3.2 2.7 2.7 3.8 2.7 2.4 3.7 3.4 2.6 2.6 2.7 2.3 2.7 2.3 3.7 3.9 4.0 Wells Fargo Investments Interactive Brokers Zecco.com Firstrade Securities Banc of America Investment Services 2.5 2.5 2.5 3.0 3.0 3.0 1.0 4.0 2.0 (a) Develop an estimated regression equation using trade price and speed of execution to predict overall satisfaction with the broker. Let xi represent satisfaction with Trade Price. Let x2 represent satisfaction with speed of execution. If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) 9 -0.7835 X 0.5580 X 0.7342 What is the coefficient of determination? If required, round your answers to four decimal places. = + + X2 3.0931
