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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

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 Satisfaction with Trade Price Satisfaction with Speed of Execution Overall Satisfaction with Electronic Trades
Scottrade, Inc. 3.2 3.1 3.2
Charles Schwab 3.3 3.1 3.2
Fidelity Brokerage Services 3.1 3.3 4.0
TD Ameritrade 2.8 3.5 3.7
E*Trade Financial 2.9 3.2 3.0
(Not listed) 2.4 3.2 2.7
Vanguard Brokerage Services 2.7 3.8 2.7
USAA Brokerage Services 2.4 3.7 3.4
Thinkorswim 2.6 2.6 2.7
Wells Fargo Investments 2.3 2.7 2.3
Interactive Brokers 3.7 3.9 4.0
Zecco.com 2.5 2.5 2.5
Firstrade Securities 3.0 3.0 3.0
Banc of America Investment Services 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 x1 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)
= + x1 + x2
What is the coefficient of determination?
If required, round your answers to four decimal places.
Interpret the coefficient of determination. If required, round your answer to one decimal places.
The regression model explains approximately % of the variation in the values of overall satisfaction in the sample.

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