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

question 29

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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:
 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, which of the following assumptions appears to have been violated? A) Normality of error B) Homoscedasticity C) Independence of errors D) None of the above  Regression Statistics  Multiple R 0.8691 R Square 0.7554 Adjusted R Square 0.7467 Standard Error 44.4765 Observations 30.0000\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}

 ANOVA \text { ANOVA }
 df  SS  MS F Significance F Regression 1171062.9193171062.919386.47590.0000 Residual 2855388.43091978.1582 Total 29226451.3503\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}


 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, which of the following assumptions appears to have been violated? A) Normality of error B) Homoscedasticity C) Independence of errors D) None of the above


 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, which of the following assumptions appears to have been violated? A) Normality of error B) Homoscedasticity C) Independence of errors D) None of the above Simple Linear Regression 12-41  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, which of the following assumptions appears to have been violated? A) Normality of error B) Homoscedasticity C) Independence of errors D) None of the above
-Referring to Scenario 12-11, which of the following assumptions appears to have been violated?


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