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TABLE 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:
-Referring to Table 13-11, which of the following is the correct interpretation for the coefficient of determination?
Capital Gains Yields
The percentage increase in the value of a financial asset, reflecting the difference between the purchase price and the selling price.
Dividend
A part of a company's profits given to stockholders, often as cash or more shares.
Probability Distribution
A mathematical representation that specifies all the possible outcomes and their chances for a random variable within a defined boundary.
Risky Stock
Stocks with a high degree of risk, typically characterized by high volatility and potential for significant loss or gain.
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