Question
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 response (scores) ranged from 0 (unsatisfied) to 4 (very satisfied). For each broker summary scores were computed by calculating a weighted average of the scores provided by each respondent. Download the Excel FileBrokerRatings.xlsxfor aportion of the survey results (AAII website, February, 7. 2012).
Using the data in the file: BrokerRatings.xlsx
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 | 2.8 | 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.
(b) What does the scatter diagram development in part (a) indicate about the relationship between the two variables?
(c) Using the "Regression" command in excel, develop the least squares estimated regression equation. Note: the speed of execution is still theindependentvariable
(d) Provide an interpretation of the slope of the estimated regression equation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started