SCENARIO 13-11 A Computer Software Developer Would Like to Use the Number

question 29

Multiple Choice

SCENARIO 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:
Simple Linear Regression 13-43
-Referring to Scenario 13-11, which of the following is the correct interpretation for the slope
Coefficient?

• A) For each decrease of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands.
• B) For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands.
• C) For each decrease of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands.
• D) For each increase of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands.

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Definitions:

Conditioned Response

In behavioral psychology, the learned response to a previously neutral stimulus that has become conditioned.

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A policy or practice aimed at ensuring a certain percentage or number of positions are reserved for indigenous people, in contexts such as education or employment.

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A common male given name in South Asia, meaning "new" in Sanskrit.

Group Membership

The affiliation or association with specific groups or communities, which can influence individual identity and behavior.