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TABLE 12-11 A Computer Software Developer Would Like to Use the Number

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TABLE 12-11
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:
TABLE 12-11 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 12-11, which of the following is the correct alternative hypothesis for testing whether there is a linear relationship between revenue and the number of downloads? A)  H₁: b₁ = 0 B)  H₁: b₁ ≠ 0 C)  H₁: β₁ = 0 D)  H₁: β₁ ≠ 0
TABLE 12-11 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 12-11, which of the following is the correct alternative hypothesis for testing whether there is a linear relationship between revenue and the number of downloads? A)  H₁: b₁ = 0 B)  H₁: b₁ ≠ 0 C)  H₁: β₁ = 0 D)  H₁: β₁ ≠ 0
TABLE 12-11 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 12-11, which of the following is the correct alternative hypothesis for testing whether there is a linear relationship between revenue and the number of downloads? A)  H₁: b₁ = 0 B)  H₁: b₁ ≠ 0 C)  H₁: β₁ = 0 D)  H₁: β₁ ≠ 0
-Referring to Table 12-11, which of the following is the correct alternative hypothesis for testing whether there is a linear relationship between revenue and the number of downloads?


Definitions:

Start-up Firms

A newly established company that is in the phase of developing and bringing to market a new product or service.

Going Public

The process by which a privately held company offers its shares to the public for the first time, through an initial public offering (IPO).

Market Value

The present rate at which a service or asset is available for sale or purchase in the open market.

Liquid Market

A market with a high level of trading activity, where assets can be bought or sold quickly without causing a significant change in their price.

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