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 Brokerage Speed Satisfaction Scottrade, Inc 3 4 3 5 Charles Schwab 3 3 3 4 Fidelity Brokerage Services 3 4 3 9 TD Ameritrade 3 6 3 7 E Trade Financial 3 2 2 9 Vanguard Brokerage Services 3 8 2 8 USAA Brokerage Services 3 8 3 6 Thinkorswim 2 6 2 6 Wells Fargo Investments 2 7 2 3 Interactive Brokers 4 0 4 0 Zecco com 2 5 2 5 (a) Develop a scatter diagram for these data with the speed of execution as the independent variable A scatter diagram has 11 points plotted on it The horizontal axis ranges from 2 to 4 5 and is labeled Speed of Execution The vertical axis ranges from 2 to 4 5 and is labeled Satisfaction The points are plotted from left to right in an upward, diagonal direction starting from the lower left corner of the diagram and are between 2 5 to 4 on the horizontal axis and between 2 to 4 on the vertical axis The points are somewhat scattered A scatter diagram has 11 points plotted on it The horizontal axis ranges from 2 to 4 5 and is labeled Speed of Execution The vertical axis ranges from 2 to 4 5 and is labeled Satisfaction The 3 leftmost points are between 2 5 to 2 75 on the horizontal axis and between 3 5 to 4 on the vertical axis Two more points are between 3 1 to 3 4 on the horizontal axis and between 3 5 to 4 on the vertical axis The 6 rightmost points are plotted from left to right in an upward, diagonal direction starting from the bottom middle of the diagram and are between 3 25 to 4 on the horizontal axis and between 2 to 3 5 on the vertical axis In each group, the points are fairly close together A scatter diagram has 11 points plotted on it The horizontal axis ranges from 2 to 4 5 and is labeled Speed of Execution The vertical axis ranges from 2 to 4 5 and is labeled Satisfaction The points are between 2 5 to 4 on the horizontal axis The 5 leftmost points are plotted from left to right in a downward diagonal direction starting from the upper left corner of the diagram and are between 2 5 to 4 on the vertical axis The 6 rightmost points are plotted from left to right in an upward, diagonal direction starting from the bottom middle of the diagram and are between 2 to 4 on the vertical axis Points tend to be fairly close together, although there is a noticeable gap between the third and fourth points from the left A scatter diagram has 11 points plotted on it The horizontal axis ranges from 2 to 4 5 and is labeled Speed of Execution The vertical axis ranges from 2 to 4 5 and is labeled Satisfaction The points are plotted from left to right in an upward, diagonal direction starting from the lower left corner of the diagram and are between 2 5 to 4 on the horizontal axis and between 2 5 to 4 5 on the vertical axis The points are somewhat scattered (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 speed of execution rating and overall satisfaction rating for electronic trades The scatter diagram indicates a negative linear relationship between speed of execution rating and overall satisfaction rating for electronic trades The scatter diagram indicates no noticeable linear relationship between speed of execution rating and overall satisfaction rating for electronic trades (c) Develop the least squares estimated regression equation (Round your numerical values to three decimal places ) (d) Provide an interpretation for the slope of the estimated regression equation The slope gives the overall satisfaction rating when the speed of execution rating is 0 The slope gives the change in the speed of execution rating for every one point increase in the overall satisfaction rating The slope gives the change in the speed of execution rating for every one point decrease in the overall satisfaction rating The slope gives the change in the overall satisfaction rating for every one point increase in the speed of execution rating The slope gives the speed of execution rating when the overall satisfaction rating is 0 (e) SupposeThinkorswimdeveloped 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 of2 6to 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 (Round your answer to one decimal place )

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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

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.

Brokerage Speed Satisfaction

Scottrade, Inc . 3.4 3.5

Charles Schwab 3.3 3.4

Fidelity Brokerage Services 3.4 3.9

TD Ameritrade 3.6 3.7

E*Trade Financial 3.2 2.9

Vanguard Brokerage Services 3.8 2.8

USAA Brokerage Services 3.8 3.6

Thinkorswim 2.6 2.6

Wells Fargo Investments 2.7 2.3

Interactive Brokers 4.0 4.0

Zecco.com 2.5 2.5

(a)

Develop a scatter diagram for these data with the speed of execution as the independent variable.

A scatter diagram has 11 points plotted on it. The horizontal axis ranges from 2 to 4.5 and is labeled: Speed of Execution. The vertical axis ranges from 2 to 4.5 and is labeled: Satisfaction. The points are plotted from left to right in an upward, diagonal direction starting from the lower left corner of the diagram and are between 2.5 to 4 on the horizontal axis and between 2 to 4 on the vertical axis. The points are somewhat scattered.
A scatter diagram has 11 points plotted on it. The horizontal axis ranges from 2 to 4.5 and is labeled: Speed of Execution. The vertical axis ranges from 2 to 4.5 and is labeled: Satisfaction. The 3 leftmost points are between 2.5 to 2.75 on the horizontal axis and between 3.5 to 4 on the vertical axis. Two more points are between 3.1 to 3.4 on the horizontal axis and between 3.5 to 4 on the vertical axis. The 6 rightmost points are plotted from left to right in an upward, diagonal direction starting from the bottom middle of the diagram and are between 3.25 to 4 on the horizontal axis and between 2 to 3.5 on the vertical axis. In each group, the points are fairly close together.
A scatter diagram has 11 points plotted on it. The horizontal axis ranges from 2 to 4.5 and is labeled: Speed of Execution. The vertical axis ranges from 2 to 4.5 and is labeled: Satisfaction. The points are between 2.5 to 4 on the horizontal axis. The 5 leftmost points are plotted from left to right in a downward diagonal direction starting from the upper left corner of the diagram and are between 2.5 to 4 on the vertical axis. The 6 rightmost points are plotted from left to right in an upward, diagonal direction starting from the bottom middle of the diagram and are between 2 to 4 on the vertical axis. Points tend to be fairly close together, although there is a noticeable gap between the third and fourth points from the left.
A scatter diagram has 11 points plotted on it. The horizontal axis ranges from 2 to 4.5 and is labeled: Speed of Execution. The vertical axis ranges from 2 to 4.5 and is labeled: Satisfaction. The points are plotted from left to right in an upward, diagonal direction starting from the lower left corner of the diagram and are between 2.5 to 4 on the horizontal axis and between 2.5 to 4.5 on the vertical axis. The points are somewhat scattered.

(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 speed of execution rating and overall satisfaction rating for electronic trades.
The scatter diagram indicates a negative linear relationship between speed of execution rating and overall satisfaction rating for electronic trades.
The scatter diagram indicates no noticeable linear relationship between speed of execution rating and overall satisfaction rating for electronic trades.

(c)

Develop the least squares estimated regression equation. (Round your numerical values to three decimal places.)

(d)

Provide an interpretation for the slope of the estimated regression equation.
The slope gives the overall satisfaction rating when the speed of execution rating is 0.
The slope gives the change in the speed of execution rating for every one point increase in the overall satisfaction rating.
The slope gives the change in the speed of execution rating for every one point decrease in the overall satisfaction rating.
The slope gives the change in the overall satisfaction rating for every one point increase in the speed of execution rating.
The slope gives the speed of execution rating when the overall satisfaction rating is 0.

(e)

SupposeThinkorswimdeveloped 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 of2.6to 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? (Round your answer to one decimal place.)