A some association On-Line Discount Broker Survey polls members on their experiences with discount brokers. As part of the survey, members were asked to rate the quality of the speed of execution with their broker as well as provide an overall satisfaction rating for electronic trades. Possible responses (scores) were no opinion (0), unsatisfied (l), somewhat satisfied (2), satisfied (3), and very satisfied (4). For each broker summary scores were computed by calculating a weighted average of the scores provided by each respondent. A portion of the survey results follow Brokerage Speed Satisfaction
Scottrade, Inc. 2.9 2.4
Charles Schwab 2.5 3.0
Fidelity Brokerage Services 3.0 3.2
TD Ameritrade 3.0 3.1
E*Trade Financial 3.0 3.2
Vanguard Brokerage Services 3.4 3.1
USAA Brokerage Services 2.7 2.5
Thinkorswim 2.4 2.2
Wells Fargo Investments 2.7 2.6
Interactive Brokers 3.6 3.1
Zecco. com 2.5 2.7
a. Develop the least squares estimated regression equation.
b. Provide an interpretation for the slope of the estimated regression equation (to 4 decimals).
c. Suppose USAA Brokerage Services developed new software to increase their speed of execution rating. If the new software is able to increase their speed of execution rating from the current value of to the average speed of execution rating for the other brokerage firms that were surveyed, what value would you predict for the overall satisfaction rating?