# A software developer would like to use the number of downloads (in thousands) to predict the amount

## Question:

A software developer would like to use the number of downloads (in thousands) to predict the amount of revenue (in hundreds of dollars) that they can earn from the full version of the new shareware. Answer the following questions based on the regression analysis below.

regression statistics | ||||||

Multiple R | 0.8691 | |||||

R Plaza | 0.7554 | |||||

adjusted r squared | 0.7467 | |||||

Standard error | 44.4765 | |||||

Observations | 30 | |||||

ANOVA | ||||||

d.f. | SS | EM | F | Meaning F | ||

Regression | 1 | 171062.9193 | 171062.9193 | 86.4759 | 0 | |

Residual | 28 | 55388.4309 | 1978.1582 | |||

Total | 29 | 226451.3503 | ||||

Coefficients | Standard error | T-statistics | P value | Inferior 95% | 95% superior | |

Intercept | -95.0614 | 26.9183 | -3.5315 | 0.0015 | -150.2009 | -39.9218 |

Descargar | 3.7297 | 0.4011 | 9.2992 | 0 | 2.9082 | 4.5513 |

1) State the regression equation.

2) What is the correct interpretation of the slope coefficient?

3) Predict revenue when the number of downloads is 30,000.

4) What is the correct interpretation of the coefficient of determination R squared?

5) The 95% confidence interval estimate for the population slope is ______ , ______.

6) Is there sufficient evidence that revenue and the number of downloads are linearly related at the 5% significance level? Give a reason why.

**Related Book For**

## Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding