Homework SourseDevelop an estimated regression equation using trade price a
Develop an estimated regression equation using trade price and speed of execution to predict overall satisfaction with the broker.
Let X1 represent satisfaction with trade Price
Let X2 represent satisfaction with speed of execution
y = __________ + ____________X1 ______________ X2
What is the coefficient of determination? _____________.
| Brokerage | Satisfaction w/ Trade Price | Satisfaction w/ Speed of excution | Overall Satisfaction w/ Electronic trades |
| AA | 3.4 | 3.1 | 3.4 |
| BB | 3 | 3.3 | 3.3 |
| CC | 3.1 | 3.3 | 4 |
| DD | 2.8 | 3.5 | 3.7 |
| EE | 2.9 | 3.2 | 2.9 |
| FF | 2.4 | 3.2 | 2.7 |
| GG | 2.6 | 3.8 | 2.6 |
| HH | 2.4 | 3.8 | 3.4 |
| II | 2.6 | 2.6 | 2.7 |
| JJ | 2.3 | 2.7 | 2.3 |
| KK | 3.7 | 3.9 | 4 |
| LL | 2.5 | 2.5 | 2.5 |
| MM | 3 | 3 | 3 |
| NN | 4 | 1 | 2 |
Solution
let y is overall satisfaction level and
here
X1 represent satisfaction with trade Price
X2 represent satisfaction with speed of execution
analysis was done in open source package R and sumarised in following table
the regression equation is
y=-0.9438+0.6017X1+0.7278X2
coefficient of determination R2=0.7084
