TABLE 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:

-Referring to Table 12-11, 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 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:

-Referring to Table 12-11, 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 of 3.7297 indicates the amount by which the expected revenue increases for each one-unit increase in the predictor variable, which is the number of downloads. Since the coefficient is positive, the expected revenue increases as the number of downloads increases, hence option B is correct.

TABLE 12-11 A Computer Software Developer Would Like to Use the Number