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

question 50

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 assumptions appears to have been
Violated?

• A) Normality of error
• B) Homoscedasticity
• C) Independence of errors
• D) None of the above

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Definitions:

Spending Habits

Patterns or tendencies in how an individual or group uses their financial resources.

Earning

The income obtained from work (wages), investments, business, or other sources, typically measured over a certain period of time.

Conclusion

Conclusion is the final part of something, or in logic, the statement that logically follows from the premises in an argument.

Introduces

To present or bring to notice something for the first time, or to make something known that was previously unknown.