Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

Regression analysis with prediction intervals

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

c. work out the coefficient of determination for the equation in part (a) (to 3 decimals).
Eliminate any independent variable that is not significant from the estimated regression equation. Now, compute the coefficient of Determination (to 3 decimals).
Portray the difference in the fit provided by the two estimated regression equations.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M922825

Have any Question? 


Related Questions in Statistics and Probability

A shipment of 8 computers contains 2 with defects find the

A shipment of 8 computers contains 2 with defects. find the probability that a sample of size 4, drawn from the 8, will not contain a defective computer. What is the probability that a sample of 4 of the 8 computers will ...

1 how many conditions are there in the simplest possible

1. How many conditions are there in the simplest possible experiment? 2. Describe how participants are assigned to conditions in randomized groups, matched-subjects, and repeated measures experimental designs. 3. What ar ...

Using size as the independent variable and cost as the

Using "size" as the independent variable and "cost" as the dependent variable, draw a scatter plot. b. Does it appear from inspection that there is a relationship between the variables? Why or why not? c. Calculate the l ...

A group of statistics students decided to conduct a survey

A group of statistics students decided to conduct a survey at their university to find the average (mean) amount of time students spend studying per week. Based on a simple random sample, they surveyed 45 students. The s ...

Exercises -81- for each of the following pairs explain why

Exercises - 8.1- For each of the following pairs, explain why you believe that they are positively related, negatively related, or essentially unrelated. If they are related, identify the dependent variable. a. The cost ...

In january 2011 the average monthly rental rate for

In January 2011, the average monthly rental rate for one-bedroom apartments in a certain city was $783. Suppose rental rates across all one-bedroom apartments in this city follow approximately a normal distribution, with ...

Assume a normal distribution for n 300 how many cases

Assume a normal distribution for N = 300. How many cases would one expect to find between +1 and -1 standard deviations around the mean? 102 285 150 204

How did religion shape indian reaction to white settlement

How did religion shape Indian reaction to white settlement in the nineteenth century?

For planning purposes the landfill in mountainview

For planning purposes. the landfill in Mountainview estimates the weight of plastic to b e1.7 pounds per household each week. You have noticed a lit of plastics in the garbage in your neighborhood and want to test the cl ...

A statisticsnbspinstructor at a large western university

A statistics instructor at a large western university would like to examine the relationship (if any) between the number of optional homework problems students do during the semester and their final course grade. She ran ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro