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Instruction 12-11
a Computer Software Developer Would Like to Use

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Instruction 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:
 Regression Statistics  Multiple R 0.8691 R Square 0.7554 Adjusted R Square 0.7467 Standard Error 44.4765 Observations 30.0000\begin{array}{l|r}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.8691 \\\hline \text { R Square } & 0.7554 \\\hline \text { Adjusted R Square } & 0.7467 \\\hline \text { Standard Error } & 44.4765 \\\hline \text { Observations } & 30.0000 \\\hline\end{array}
ANOVA
dfSSMSFsignificanceF Regression 1171062.9193171062.919386.47590.0000 Residual 2855388.43091978.1582 Total 29226451.3503\begin{array}{|l|r|r|r|r|r|}\hline &df&SS&MS&F&significance F\\\hline \text { Regression } & 1 & 171062.9193 & 171062.9193 & 86.4759 & 0.0000 \\\hline \text { Residual } & 28 & 55388.4309 & 1978.1582 & & \\\hline \text { Total } & 29 & 226451.3503 & & & \\\hline\end{array}

 Coefficients  Standard Error t Stat  P-value  Lower 95%  Upper 95%  Intercept 95.061426.91833.53150.0015150.200939.9218 Download 3.72970.40119.29920.00002.90824.5513\begin{array}{lrrrrrrr}\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -95.0614 & 26.9183 & -3.5315 & 0.0015 & -150.2009 & -39.9218 \\\text { Download } & 3.7297 & 0.4011 & 9.2992 & 0.0000 & 2.9082 & 4.5513 \\\hline\end{array}  Instruction 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:   \begin{array}{l|r} \hline {\text { Regression Statistics }} \\ \hline \text { Multiple R } & 0.8691 \\ \hline \text { R Square } & 0.7554 \\ \hline \text { Adjusted R Square } & 0.7467 \\ \hline \text { Standard Error } & 44.4765 \\ \hline \text { Observations } & 30.0000 \\ \hline \end{array}  ANOVA  \begin{array}{|l|r|r|r|r|r|} \hline &df&SS&MS&F&significance F\\ \hline \text { Regression } & 1 & 171062.9193 & 171062.9193 & 86.4759 & 0.0000 \\ \hline \text { Residual } & 28 & 55388.4309 & 1978.1582 & & \\ \hline \text { Total } & 29 & 226451.3503 & & & \\ \hline \end{array}    \begin{array}{lrrrrrrr} \hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\ \hline \text { Intercept } & -95.0614 & 26.9183 & -3.5315 & 0.0015 & -150.2009 & -39.9218 \\ \text { Download } & 3.7297 & 0.4011 & 9.2992 & 0.0000 & 2.9082 & 4.5513 \\ \hline \end{array}      -Referring to Instruction 12-11,which of the following is the correct interpretation for the slope coefficient? A) For each increase of 1 thousand downloads,the expected revenue is estimated to increase by $3.7297 thousands. B) For each increase of 1 thousand dollars in expected revenue,the expected number of downloads is estimated to increase by 3.7297 thousands. C) For each decrease of 1 thousand dollars in expected revenue,the expected number of downloads is estimated to increase by 3.7297 thousands. D) For each decrease of 1 thousand downloads,the expected revenue is estimated to increase by $3.7297 thousands.  Instruction 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:   \begin{array}{l|r} \hline {\text { Regression Statistics }} \\ \hline \text { Multiple R } & 0.8691 \\ \hline \text { R Square } & 0.7554 \\ \hline \text { Adjusted R Square } & 0.7467 \\ \hline \text { Standard Error } & 44.4765 \\ \hline \text { Observations } & 30.0000 \\ \hline \end{array}  ANOVA  \begin{array}{|l|r|r|r|r|r|} \hline &df&SS&MS&F&significance F\\ \hline \text { Regression } & 1 & 171062.9193 & 171062.9193 & 86.4759 & 0.0000 \\ \hline \text { Residual } & 28 & 55388.4309 & 1978.1582 & & \\ \hline \text { Total } & 29 & 226451.3503 & & & \\ \hline \end{array}    \begin{array}{lrrrrrrr} \hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\ \hline \text { Intercept } & -95.0614 & 26.9183 & -3.5315 & 0.0015 & -150.2009 & -39.9218 \\ \text { Download } & 3.7297 & 0.4011 & 9.2992 & 0.0000 & 2.9082 & 4.5513 \\ \hline \end{array}      -Referring to Instruction 12-11,which of the following is the correct interpretation for the slope coefficient? A) For each increase of 1 thousand downloads,the expected revenue is estimated to increase by $3.7297 thousands. B) For each increase of 1 thousand dollars in expected revenue,the expected number of downloads is estimated to increase by 3.7297 thousands. C) For each decrease of 1 thousand dollars in expected revenue,the expected number of downloads is estimated to increase by 3.7297 thousands. D) For each decrease of 1 thousand downloads,the expected revenue is estimated to increase by $3.7297 thousands.
-Referring to Instruction 12-11,which of the following is the correct interpretation for the slope coefficient?


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