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

question 141

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 is the critical value for testing whether there is a linear relationship between revenue and the number of downloads at a 5% level of significance?

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Definitions:

Spinal Cord

The long, thin, tubular structure made up of nervous tissue, which extends from the brainstem to the lower back, carrying nerve impulses to and from the brain.

Fine Movements

Precise, delicate motions typically involving small muscle groups, important for tasks such as writing or sewing.

Longitudinal Fissure

A deep groove that separates the two hemispheres of the brain.

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The two halves of the brain or the Earth, typically referred to as the Northern and Southern or Eastern and Western hemispheres.