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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 homoscedasticity of error assumption appears to have been violated.
Current Ratio
A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.
Acid-Test Ratio
A stringent indicator of whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.
Current Ratio
A financial metric assessing a firm's capacity to settle short-term debts using its existing assets.
Liquidity Ratios
Liquidity ratios are financial metrics used to assess a company's ability to meet its short-term obligations by comparing its liquid assets to its current liabilities.
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