Ask Question, Ask an Expert


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).



Trade Execution




Wall St. Access





E*TRADE (Power)





E*TRADE (Standard)





Preferred Trade





My Track





TD Waterhouse





Brown & Co.





Brokerage America





Merrill Lynch Direct





Strong Funds





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?

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

1 explain why the byzantium empire went in a different

1. Explain why the Byzantium Empire went in a different direction from Europe (even though both were Christian) after the breakup of Rome. This will require some examination of historical and geographical influences, jus ...

According to pew research center 71 of internet users

According to Pew Research Center, 71% of Internet users accessed video-sharing sites in August2011. A random sample of 50 Internet users was selected. Using the normal approximation to thebinomial distribution, what is t ...

1 do outliers increase or decrease the magnitude of

1. Do outliers increase or decrease the magnitude of correlation coefficients? 2. What impact does reliability have on correlation? 3. Why can't we infer causality from correlation?

Tables or graphsusing the internet the text or another

Tables or Graphs Using the Internet, the text, or another reliable source such as a newspaper or periodical site, (not a scholastic or school site like Khan Academy and not Wikipedia), research some important data that h ...

A consumer advocacy group tested the on-air lifetimes a

A consumer advocacy group tested the "on-air" lifetimes a random sample of 241 cell phone batteries. The mean lifetime was 3.2 hours with a standard deviation of 0.1 hours. The lifetimes are approximately bell-shaped. Es ...

1 does the average iq for residents of a state vary with

1. Does the average IQ for residents of a state vary with the amount that the state spends on education? Seven of the 50 U.S. states were randomly selected. The amount that each spent per student (in thousands of dollars ...

1 when do researchers use regression analysis2 what is

1. When do researchers use regression analysis? 2. What is multiple regression analysis? 3. Distinguish among simultaneous (or standard), stepwise, and hierarchical regression.

Please show the work step by step to make it

Please show the work step by step to make it understandable. A random sample of 16 students showed that the variance in the number of hours they spend studying for a final exam was 25 hours 2 Part a. Construct a 95% conf ...

Your company is seeking to forecast demand for the next

Your company is seeking to forecast demand for the next month based on the information given in the following table: Month May June July Aug Oct Sept Oct Nov Dec Demand 40 44 43 45 42 50 48 54 a. (6) Develop a forecast f ...

If the slope of a straight line is 23 and correlation

If the slope of a straight line is 2.3 and correlation coefficient is 0.777, calculate coefficient of determination.

  • 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