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
a. Develop an estimated regression equation using trade price and speed of execution to predict overall satisfaction with the broker.
b. 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 Finger Lakes Investments if they can achieve these performance levels.
c. Develop a 95% confidence interval estimate of the overall satisfaction of electronic trades for all brokers that provide satisfactory levels of service for both trade price and speed of execution.
d. Develop a 95% prediction interval of overall satisfaction for Finger Lakes Investments assuming they achieve service levels of 3 for both trade price and speed ofexecution.
Trade Price Speed of Execution Satisfaction Electronic Trades Brokerage 3.4 3.2 3.1 2.9 2.9 2.5 2.6 2.4 2.6 2.3 3.7 2.5 3.0 4.0 3.4 3.3 3.4 3,6 3.2 3.2 3.8 3.8 2.6 2.7 4.0 2.5 3.0 1.0 Scottrade, Inc. Charles Schwab Fidelity Brokerage Services TD Ameritrade 3.5 3.4 3.9 3.7 2.9 2.7 2.8 3.6 2.6 2.3 4.0 2.5 4.0 2.0 E Trade Financial (Not listed) Vanguard Brokerage Services USAA Brokerage Services Thinkorswim Wells Fargo Investments Interactive Brokers Zecco.com Firstrade Securities Banc of America Investment Services
This problem has been solved!
- Tutor Answer
a A portion of the Minitab output follows The regression equation is Satisfaction Elect…View the full answer
Students also viewed these Statistics questions