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

question 104

True/False

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, there appears to be autocorrelation in the residuals.

---

Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the company's leverage level.

Marginal Costs

The cost of producing one additional unit of a product or service, often used in decision-making and pricing strategies.

Corporate Tax Rates

The rates at which corporations are taxed on their profits by the government.

Capital Structure

The mix of debt and equity financing used by a firm to finance its operations and growth.