If the Probability That a Firm Is Caught Making Illegal

question 9

True/False

If the probability that a firm is caught making illegal copies of software increases with the number of copies that the firm makes, then the larger the fine assessed for copying, the smaller will be the number of copies made by each software-copying firm.

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Definitions:

Regression

A statistical method used to examine the relationship between one or more independent variables and a dependent variable.

Dependent Variable

The variable in an experimental setting that is expected to change in response to manipulations in the independent variable.

Independent Variable

A factor in a model or study that is deliberately altered to examine its impact on the variable that is being measured.

Coefficient Of Determination

A statistical measure that determines the proportion of variance in the dependent variable predictable from the independent variable(s).