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

question 132

True/False

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, the null hypothesis for testing whether there is a linear relationship between revenue and the number of downloads is "There is no linear relationship between revenue and the number of downloads".

---

Definitions:

Wasted Coverage

The portion of advertising or marketing efforts that reach an audience outside the target market, leading to inefficiency and unnecessary expense.

Inconsistency

The state of being inconstant or not remaining the same throughout, which can lead to unpredictability or lack of reliability.

Agrichemical Laboratory

A facility specialized in the study, testing, and development of chemicals used in agriculture, such as fertilizers and pesticides.

Marketing Budget

An allocation of financial resources set aside specifically for marketing activities aimed at achieving business objectives.