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

question 150

Multiple Choice

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:
$\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.8691 \\\hline \text { R Square } & 0.7554 \\\hline \text { Adjusted R Square } & 0.7467 \\\text { Standard Error } & 44.4765 \\\text { Observations } & 30.0000 \\\hline\end{array}$
ANOVA
$\begin{array}{lr|r|r|r|r}\hline & d f & {\text { SS }} &{\text { MS }} & F & \text { Significance } F \\\hline \text { Regression } & 1 & 171062.9193 & 171062.9193 & 86.4759 & 0.0000 \\\hline \text { Residual } & 28 & 55388.4309 & 1978.1582 & & \\\hline \text { Total } & 29 & 226451.3503 & & & \\\hline\end{array}$

$\begin{array}{lrrrrrrr}\hline & \text { Coefficients } & \text { Standard Emor } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -95.0614 & 26.9183 & -3.5315 & 0.0015 & -150.2009 & -39.9218 \\\text { Download } & 3.7297 & 0.4011 & 9.2992 & 0.0000 & 2.9082 & 4.5513 \\\hline\end{array}$
-Referring to Instruction 12-11,which of the following is the correct interpretation for the coefficient of determination?

• A)72.8% of the variation in the video unit sales can be explained by the variation in the box office gross.
• B)71.8% of the variation in the video unit sales can be explained by the variation in the box office gross.
• C)71.8% of the variation in the box office gross can be explained by the variation in the video unit sales.
• D)72.8% of the variation in the box office gross can be explained by the variation in the video unit sales.

---

Definitions:

Conservative Movement

An ideological and political movement advocating for traditional values, limited government, and free market principles.

Libertarians

Individuals who advocate for minimal governmental intervention in personal and economic matters, emphasizing personal freedom and autonomy.

New Conservatives

A political movement that emerged in the late 20th century, emphasizing traditional values, free-market capitalism, and a strong national defense.

Freedom

The state of being free, especially in terms of personal rights and liberty, unimpeded by oppression or arbitrary restrictions.