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

question 72

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 homoscedasticity of error assumption appears to have been violated.

---

Definitions:

King Cotton

Refers to the economic and political significance of cotton production in the Southern United States before the Civil War, especially its centrality to the economy of the South and its role in international trade.

Rising Influence

A term referring to the increasing power or impact of a person, organization, or country in various domains such as politics, culture, or the economy.

American War

Likely refers to any significant military conflict involving the United States, but without specific context, it could mean the American Civil War, the American Revolution, or another major conflict.

Slave Codes

Laws that were established in the colonial and antebellum Southern United States to define the status of slaves and the rights of masters. These codes placed harsh restrictions on slaves’ behaviors and movements.