TABLE 13-11 A Computer Software Developer Would Like to Use the Number

question 163

Multiple Choice

TABLE 13-11
A computer software developer would like to use the number of downloads (in thousands) for the trial version of his new shareware to predict the amount of revenue (in thousands of dollars) he can make on the full version of the new shareware.Following is the output from a simple linear regression along with the residual plot and normal probability plot obtained from a data set of 30 different sharewares that he has developed:
-Referring to Table 13-11,which of the following is the correct alternative hypothesis for testing whether there is a linear relationship between revenue and the number of downloads?

• A)H₁ : b₁ = 0
• B)H₁ : b₁ ≠ 0
• C)H₁ : β₁ = 0
• D)H₁ : β₁ ≠ 0

---

Definitions:

Horizontal Analysis

A financial analysis technique that compares historical financial information over a series of reporting periods.

Comparative Financial Statements

Financial reports that present the financial position and results of operations for a business across two or more periods, facilitating analysis over time.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets.

Inventory

The goods and materials a business holds for the purpose of resale or production.