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(d) An investment company has developed a new electronic trading system and would like to predict overall customer satisfaction assuming they can provide satisfactory service levels (3) for both trade price and speed of execution. Use the estimated regression equation developed in part (a) to predict the overall satisfaction level for the investment company if they can achieve these performance levels. (Round your answer to one decimal place.) (e) What concerns (if any) do you have with regard to the possible responses the respondents could select on the survey?
An investors association's on-line discount broker survey polls members on their experiences with electronic trades handled by discount brokers. As part of the survey, members were asked to rate their satisfaction with the trade price and the speed of execution, as well as provide an overall satisfaction rating. Possible responses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satisfied (3), and very satisfied (4). For each broker, summary scores were computed by computing a weighted average of the scores provided by each respondent. A portion of the survey results follow. (Let x₁ represent satisfaction with trade price, X₂ represent satisfaction with speed of execution, and y represent overall satisfaction with electronic trades.) Brokerage Brokerage 1 Brokerage 2 Brokerage 3 Brokerage 4 Brokerage 5 Brokerage 6 Brokerage 7 Brokerage 8 Brokerage 9 Brokerage 10 Brokerage 11 Brokerage 12 Brokerage 13 Brokerage 14 Satisfaction with Trade Price 3.5 3.1 3.0 3.0 2.8 2.4 2.7 2.5 2.7 2.4 3.8 2.6 3.1 4.0 Satisfaction with Speed of Execution 3.3 3.4 3.5 3.5 3.1 3.1 3.7 3.7 2.5 2.6 4.0 2.6 3.1 0.9 Overall Satisfaction with Electronic Trades 3.4 3.5 3.9 3.6 3.0 2.8 2.9 3.5 2.5 2.4 4.0 2.4 4.0 1.9