Regression analysis with prediction intervals

Assignment Help Basic Statistics

Reference no: EM1322276

Barron's conducts an annual review of online brokers, including both brokers that can be accessed via a Web browser, as well as direct-access brokers that 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 overall score, and 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 of 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 10 of the online brokers that Barron's evaluated (Barron's, March 10, 2003).

Broker	Trade Execution	Use	Range	Rating
Wall St. 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
Strong Funds	1.4	3.6	2.5	2.0

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 (to 3 decimals).

Rating = ______ + ______ TradeEx + ____ Use + ______ Range

b. Use the t test to determine the significance of each independent variable. What is your conclusion at the .05 level of significance?

TradeEx
Use
Range

c. Calculate the coefficient of determination for the equation in part (a) (to 3 decimals).

Remove any independent variable that is not significant from the estimated regression equation. Now, calculate the coefficient of Determination (to 3 decimals).

Describe the difference in the fit provided by the two estimated regression equations.

Reference no: EM1322276

Questions Cloud

What distance does the car cover in the first 4.0 seconds : The distance to the Andromeda Galaxy is estimated at about 2 ´ 106 light years. A light year is distance travelled by light in one year; if the speed of light is 3 ´ 108 m/s, about how far is it from our galaxy to Andromeda? (1 year = 3.15 ´ 107 s..

Estimating r-square from the regression equation : A partial computer output from a regression analysis as follows. The regression equation is:

How long does it take to make the complete trip : Evaluate with the strength of the earth's gravity at its surface, how much weaker is gravity at a distance of 10 earth's center.

What maximum upward acceleration can it give the elevator : A motorist drives south at 22 m/s for 3.00 min, then turns west and travels at 25.0 m/s for 2.40 min, and finally travels northwest at 30 m/s for 1.00 min. For this 6.40 min trip, find out the following values.

Regression analysis with prediction intervals : Describe the difference in the fit provided by the two estimated regression equations.

Find the impulse delivered to the ball by the floor : .250 kg ball is dropped to the floor from a height of 1.0 m and upon rebounding, reaches a height of .60 m. What is the impulse delivered to the ball by the floor?

What is the wire''s linear charge density : Ladder 6.55 m long leans against the side of a building. If the ladder is inclined at an angle of 65.5° to the horizontal, what is the horizontal distance from the bottom of ladder to the building.

Find out temperature at a height of 10,000 feet : If 3.43×10^8 electrons flow through the ground wire to Earth and the ground wire is then removed, what is the net charge on the electroscope.

Two boats start together and race across a 50.0 km : A hotel elevator ascends 170m with a maximum speed of 4.4m/s. Its acceleration and deceleration both have a magnitude of 1m/s2.

User Account

All Pages