How closely does the number of trading accounts relate to the total assets of the

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How closely does the number of trading accounts relate to the total assets of the 10 largest online stock brokerages? The table below presents data on these brokerages. The number of accounts is in thousands, and assets are in billions of dollars.

Brokerage

Accounts (1000)

Assets ($ billions)

Ameritrade

428

19.5

Charles Schwab

2500

219

Datek

205

5.5

Discover

134

5.9

DLJ Direct

590

11.2

E* Trade

909

21.1

Fidelity

2300

160

National Discount Brokers

125

6.8

Suretrade

130

1.3

TD Waterhouse

615

38.8



(a) Does the wording of the initial question in this exercise indicate which variable should be treated as the response?
(b) Construct a scatterplot with Assets on the vertical axis and Accounts on the horizontal axis.
(c) Comment on the form, direction, and strength of the relationship between Assets and Accounts.
(d) Two brokerage stand out from the rest of the data. Identify these two brokerages by putting their names near their respective data points in your scatterplot. 

  • 11 years ago
How closely does the number of trading accounts relate to the total assets of the
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