Reference no: EM13242130
Barron's conducts an annual review of online brokers, including both brokers who can be accessed via a Web browser, as well as direct- access brokers who connect customers directly with the broker's network server. Each broker's offerings and performance are evaluated in six areas, using a point value of 0- 5 in each category. The results are weighted to obtain an over-all score, a final star rating, ranging from zero to five stars, is assigned to each broker. Trade execution, ease of use, and range of offerings are three of the areas evaluated. A point value of 5 in the trade execution area means the order entry and execution process flowed easily from one step to the next. A value of 5 in the ease of use area means that the site was easy to use and can be tailored to show what the user wants to see. A value of 5 in the range offerings area means that all the investment transactions can be executed online. The following data show the point values for trade execution, ease of use, range of offerings, and the star rating for a sample of 9 of the online brokers that Barron's evaluated.
Broker Trade Execution Use Range Rating
Wall Street Access 3.7 4.5 4.8 4.0
E-Trade (Power) 3.4 3.0 4.2 3.5
E-Trade (Standard) 2.5 4.0 4.0 3.5
Preferred Trade 4.8 3.7 3.4 3.5
my Track 4.0 3.5 3.2 3.5
TD Waterhouse 3.0 3.0 4.6 3.5
Brown & Co 2.7 2.5 3.3 3.0
Brokerage America 1.7 3.5 3.1 3.0
Merrill Lynch Direct 2.2 2.7 3.0 2.5
a. Determine the estimated regression equation that can be used to predict the star rating given the point values for execution, ease of use, and range of offerings.
b. Use the F test to determine the overall significance of the relationship. What is the conclusion at .01 level of significance?
c. Use the t test to determine the significance of each independent variable. What is your conclusion at .01 level of significance?
d. Remove any independent variable that is not significant from the estimated regression equation.
What is your recommended estimated regression equation? Compare the R2 with the value of R2 from part (a). Discuss the differences.
|
Discuss the impact on profitability in both situations
: Imagine you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby, the community is unaware. Assess the costs involved in cleaning up the water immediately (confessing) versus hiding the ..
|
|
How to spend time on sociology and none on economics
: Martha is preparing for exams in economics and sociology. She has time to read 40 pages of economics and 30 pages of sociology. In the same amount of time she could also read 30 pages of economics and 60 pages of sociology.
|
|
What is the signal
: a detector has a sensitivity of 10^6 V/W and a NEP* = 10^-10 W/Hz^1/2. Light of 1E-6 W power is measured with the detector, what is the signal
|
|
Suggest how the airlines can maximize profits while avoiding
: From the second e-Activity, assess the marketing and pricing strategies, for example rebates, to determine the goal(s) of the marketing and pricing strategies for one of the companies you researched
|
|
Determine the overall significance of the relationship
: Determine the estimated regression equation that can be used to predict the star rating given the point values for execution, ease of use, and range of offerings.
|
|
What was value of that investment at the end of year
: An investment of $10,000 in 1993 earned a market interest rate of 6% for 10 years. The average inflation rate during that time was 3%. What was the value of that investment at the end of the 10 year period in 1993 dollars
|
|
Assume you have been hired as a managing consultant by a
: Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of o..
|
|
Using the estimated sales and production of 10000 pairs
: The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis.
|
|
Compute and interpret and r2 and r2a
: Develop an estimated regression equation relating the top speed with the boat's beam and horsepower rating and compute and interpret and R2 and R2a
|