TABLE 13-11
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:

-Referring to table 13-11, which of the following is the correct interpretation for the slope coefficient?
A) For each decrease of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands.
B) For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands.
C) For each decrease of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands.
D) For each increase of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands.

Question

TABLE 13-11
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:

-Referring to table 13-11, which of the following is the correct interpretation for the slope coefficient?
A) For each decrease of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands. 
B) For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands. 
C) For each decrease of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands. 
D) For each increase of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands.

Quizplus · Accepted Answer

The slope coefficient is the coefficient of the independent variable (number of downloads) in the linear regression equation. In this case, the slope coefficient is 3.7297, which means that for each increase of 1 thousand downloads, the expected revenue is estimated to increase by $3.7297 thousands. Therefore, the correct interpretation is B.

TABLE 13-11 A Computer Software Developer Would Like to Use the Number