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

question 23

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:
$\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.8691 \\\hline \text { R Square } & 0.7554 \\\hline \text { Adjusted R Square } & 0.7467 \\\text { Standard Error } & 44.4765 \\\text { Observations } & 30.0000\end{array}$
ANOVA
$\begin{array}{|l|r|r|r|r|r|}\hline&df&SS&MS&F&\text {significance F}\\\hline \text { Regression } & 1 & 171062.9193 & 171062.9193 & 86.4759 & 0.0000 \\\hline \text { Residual } & 28 & 55388.4309 & 1978.1582 & & \\\hline \text { Total } & 29 & 226451.3503 & &\\\hline\end{array}$
$\begin{array}{lrrrrrrr}\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -95.0614 & 26.9183 & -3.5315 & 0.0015 & -150.2009 & -39.9218 \\\hline \text { Download } & 3.7297 & 0.4011 & 9.2992 & 0.0000 & 2.9082 & 4.5513\end{array}$
-Referring to Instruction 12-11,the normality of error assumption appears to have been violated.

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Definitions:

Source System

A system where data originates before it is transferred to a destination system, commonly used in data integration and migration scenarios.

Data Warehouse

A large store of data accumulated from a wide range of sources within a company and used to guide management decisions.

ERP

Enterprise Resource Planning, a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management, compliance, and supply chain operations.

Big Data

The collection and analysis of large and complex data sets that traditional data-processing application software are inadequate to deal with.