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Linear Regression

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 connected 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 the 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.

Problem

Using alpha = .05

A. Determine the estimated regression equation that can be used to predict the start rating given the point values for execution, ease of use, and range of offerings, and briefly interpret the findings. Note: (keep all three independent variables in the regression model even if you find some independent variable(s) that is/are NOT statistically significant).

B. Use the F test to determine the overall significance of the relationship. What is the conclusion at the .05 level of significance? Note: Formulate the relevant hypotheses before you work on SPSS analysis.

C: Use the t test to determine the significance of each independent variable. What is your conclusion at the .05 level of significance? Note: Formulate the relevant hypotheses before you work on SPSS analysis

See attached problem and data file for more information.

Must be done in SPSS so I can see how the answers were arrived at. Prefer the steps to solve in SPSS be included.

Attachments

Solution Preview

Using SPSS exclusively:

Background

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 connected 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 the 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 ...

Solution Summary

Solutions and complete explanations are included. All necessary SPSS steps are also included.

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