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	3.3	3.5	3.4
Brokerage 2	3.3	3.4	3.5
Brokerage 3	3.2	3.3	3.9
Brokerage 4	2.8	3.7	3.6
Brokerage 5	2.8	3.1	2.8
Brokerage 6	2.4	3.1	2.8
Brokerage 7	2.5	3.9	2.7
Brokerage 8	2.3	3.9	3.5
Brokerage 9	2.5	2.5	2.7
Brokerage 10	2.2	2.6	2.4
Brokerage 11	3.6	4.0	4.0
Brokerage 12	2.4	2.4	2.6
Brokerage 13	3.1	3.1	4.0
Brokerage 14	4.0	1.1	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.)

=

(b) 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.

(c)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 =

(d) Test whether the regression parameter₂is equal to zero.Find thep-value. (Round your answer to four decimal places.)

p-value =

(e)An investment company has developed a new electronic trading system and would like to predict overall customer satisfaction assuming they can provide satisfactory service levels (3) for both trade price and speed of execution. Use the estimated regression equation developed in part (a) to predict the overall satisfaction level for the investment company if they can achieve these performance levels. (Round your answer to one decimal place.)

(f)What concerns (if any) do you have with regard to the possible responses the respondents could select on the survey?