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

question 32

Multiple Choice

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?

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Definitions:

Principal

An amount of money borrowed from a lender.

Equity Funds

Investment funds that primarily invest in stocks with the aim of achieving growth by capital gains and dividends for their investors.

Periodic Repayments

Regular payments made over time to settle a debt or loan, often consisting of both principal and interest components.

Profits

The financial gain obtained when the revenue from business activities exceeds the expenses, taxes, and costs of operation.