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

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

$\begin{array}{lrrrrrrr}\hline & \text { Coefficients } & \text { Standard Eror } &{t \text { Stat }} & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -95.0614 & 26.9183 & -3.5315 & 0.0015 & -150.2009 & -39.9218 \\\hline \text { Download } & 3.7297 & 0.4011 & 9.2992 & 0.0000 & 2.9082 & 4.5513\end{array}$
-Referring to Instruction 12-11,the null hypothesis that there is no linear relationship between revenue and number of downloads should be rejected at a 5% level of significance.