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, the null hypothesis that there is no linear relationship between revenue and the number of downloads should be reject at a 5% level of significance.

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, the null hypothesis that there is no linear relationship between revenue and the number of downloads should be reject at a 5% level of significance.

Quizplus · Accepted Answer

This conclusion can be drawn from the regression output, where the p-value for the coefficient of the number of downloads is less than 0.05, indicating a statistically significant linear relationship. The residual plot and normal probability plot also suggest that the linear regression assumptions are met. Therefore, we reject the null hypothesis and conclude that there is a linear relationship between revenue and the number of downloads.

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