American association of individual investors

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The American Association of Individual Investors conducted an annual survey of discount brokers (AAII Journal,January 2003). The commissions charged by 24 discount brokers for two types of trades, a broker-assisted trade of 100 shares at $50 per share and an online trade of 500 shares at $50 per share, are shown in Table 3.2.

a. Compute the mean, median, and mode for the commission charged on a brokerassisted trade of 100 shares at $50 per share.

b. Compute the mean, median, and mode for the commission charged on an online trade of 500 shares at $50 per share.

c. Which costs more, a broker-assisted trade of 100 shares at $50 per share or an online trade of 500 shares at $50 per share?

d. Is the cost of a transaction related to the amount of the transaction?

Reference no: EM131007946

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