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

question 112

True/False

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
$\begin{array}{|l|r|r|r|r|r} & {\text { df }} & {\text { SS }} & {\text { MS }} & F & \text { Significance F } \\\hline \text { Regression } & 1 & 171062.9193 & 171062.9193 & 86.4759 & 0.0000 \\\hline \text { Residual } & 28 & 55388.4309 & 1978.1582 & & \\\hline \text { Total } & 29 & 226451.3503 & & &\end{array}$

$\begin{array}{lrrrrrr}\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & {\text { Lower 95\% }} & \text { Upper 95\% } \\\hline \text { Intercept } & -95.0614 & 26.9183 & -3.5315 & 0.0015 & -150.2009 & -39.9218 \\\hline \text { Download } & 3.7297 & 0.4011 & 9.2992 & 0.0000 & 2.9082 & 4.5513\end{array}$
-Referring to Instruction 12-11,there appears to be autocorrelation in the residuals.

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Definitions:

Misinformation Effect

The occurrence when an individual's memory of events is distorted due to information received after the event.

Encoding Failure

The phenomenon in which information does not enter the brain's long-term memory, typically resulting in the inability to recall this information later.

Event Imagined

The act of mentally visualizing or simulating a possible event in one's mind.

Memory Construction

The process by which our brain encodes, stores, and retrieves information, heavily influenced by our perceptions, beliefs, and experiences.