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, the Durbin-Watson statistic is inappropriate for this data set.
Definitions:
Earnings Per Share
A financial metric that calculates the portion of a company’s profit allocated to each outstanding share of common stock, indicating a company's profitability.
Common Stock
Equity ownership in a corporation, providing voting rights and potential dividends to shareholders.
Dividends
Disbursements issued by a company to its shareholders, often as an allocation of earnings.
Dividend Yield Ratio
A financial metric indicating the annual dividends a company distributes in comparison to its stock price.
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