SCENARIO 12-11
a Computer Software Developer Would Like to Use

question 80

Short Answer

SCENARIO 12-11
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:
$\begin{array}{lr}{\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.8691 \\\hline \text { R Square } & 0.7554 \\\hline \text { Adjusted R Square } & 0.7467 \\\hline \text { Standard Error } & 44.4765 \\\hline \text { Observations } & 30.0000 \\\hline\end{array}$

$\text { ANOVA }$
$\begin{array}{|l|r|r|r|r|r|}\hline &\text { df } & \text { SS } & \text { MS } & F & \text { Significance } F \\ \hline \text { Regression } & 1 & 171062.9193 & 171062.9193 & 86.4759 & 0.0000 \\\hline \text { Residual } & 28 & 55388.4309 & 1978.1582 & & \\\hline \text { Total } & 29 & 226451.3503 & & \\\hline\end{array}$





Simple Linear Regression 12-41
-Referring to Scenario 12-11, what do the lower and upper limits of the 95% confidence interval estimate for the mean change in revenue as a result of a one thousand increase in the number of downloads?

Identify the various types of reliability and what they measure.

Understand the concept of validity and the different types of validity.

Know when and how to measure internal consistency reliability.

Recognize the difficulty in establishing construct validity and its significance.

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Definitions:

Office Supplies

Items used in an office on a regular basis, such as paper, pens, and envelopes, which are consumed in use and need regular replenishment.

Temporary Accounts

Accounts used to record transactions within a specific accounting period, which are then closed and transferred to permanent accounts at the end of the period to prepare the company's financial statements.

Retained Earnings

The portion of net profits not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Accounting Period

The time frame covered by the financial statements of a company, typically a fiscal year or quarter, used to calculate earnings and track financial performance.