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

question 199

Short Answer

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, what is the p-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:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, are subtracted from total revenue.

Revenue

The income received by a company from its business activities, usually from the sale of goods and services to customers.

Expenses

Money spent or cost incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Liability

An obligation of the company that arises from past transactions or events, leading to a probable future sacrifice of economic benefits.