The American Assodation of Individual Investors (AAII) On-Line Discount Broker S
ID: 3301763 • Letter: T
Question
The American Assodation 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 Satisfaction with Trade Price 3.2 3.3 3.1 2.8 2.9 2.4 2.7 2.4 2.6 2.3 3.7 2.5 Satisfaction with Speed of Execution 3.1 3.1 3.3 3.5 3.2 3.2 3.8 3.7 2.6 2.7 3.9 2.5 Overall Satisfaction with Electronic Trades 3.2 3.2 Brokerage 8B OD 3.7 2.7 2.7 3.4 2.7 2.3 2.5 (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) -.6633 7746 4897 X2Explanation / Answer
(a) y=-0.6633+0.7746X1+0.4897X2
(b) coefficient of determination=R-square=0.7256
coefficient of determination is proportion of variability explained by the independent variables, so here 72.56% variablity in the dependent varible is explained by the model
(c) at 5% level of significance both the indpendent variable X1 and X2 are significant
as it should be expected
(d) X1 and X2 value is not given
(e)
y=satisfaction, X1=price and X2=speed
following information has been generated using ms-excel from the given data set
SUMMARY OUTPUT Regression Statistics Multiple R 0.851792685 R Square 0.725550778 Adjusted R Square 0.675650919 Standard Error 0.343478562 Observations 14 ANOVA df SS MS F Significance F Regression 2 3.430819 1.71540934 14.54013695 0.00081572 Residual 11 1.297753 0.11797752 Total 13 4.728571 Coefficients Standard Error t Stat P-value Intercept -0.663327871 0.824833 -0.80419626 0.4383185 X Variable 1 0.774609849 0.152106 5.09256948 0.000348067 X Variable 2 0.489668354 0.201592 2.42900518 0.033468644Related Questions
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