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 increase of 1 download, the expected revenue is estimated to increase by $ 3.7297.
B) For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands.
C) For each increase of 1 dollar in expected revenue, the expected number of downloads is estimated to increase by 3.7297.
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 increase of 1 download, the expected revenue is estimated to increase by $ 3.7297. 
B) For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands. 
C) For each increase of 1 dollar in expected revenue, the expected number of downloads is estimated to increase by 3.7297. 
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 represents the change in the predicted revenue for a one-unit increase in downloads. In this case, the predictor variable is measured in thousands, so the slope coefficient should also be interpreted in thousands. Therefore, the correct interpretation is: "For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $3.7297 thousands."

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