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

question 124

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 interpretation for the slope coefficient?

• A) For each increase of 1 download, the expected revenue is estimated to increase by $ 3.7297.
• B) For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands.
• C) For each increase of 1 dollar in expected revenue, the expected number of downloads is estimated to increase by 3.7297.
• D) For each increase of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands.

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Definitions:

Net Income

The total revenue minus total expenses, representing the profit or loss over a specific period.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate until it matures.

Borrowing Funds

The act of obtaining money from another party with the promise to return the principal amount along with interest.

Accounts Payable

Accounts payable represents the amounts a company owes to suppliers or creditors for goods or services received that have not yet been paid for.