Referring to Table 12-11, which of the following is the correct interpretation for the coefficient of determination? А. 74.67% of the variation in revenue can be explained by the variation in the number of downloads. В. 75.54% of the variation in revenue can be explained by the variation in the number of downloads. OC. 74.67% of the variation in the number of downloads can be explained by the variation in revenue. D. 75.54% of the variation in the number of downloads can be explained by the variation in revenue.

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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:
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
0.8691
0.7554
0.7467
44.4765
Observations
30.0000
ANOVA
SS
171062.9193 171062.9193
Significance F
0.0000
df
MS
Regression
AResidual
1
86.4759
28
55388.4309
1978. 1582
Total
29
226451.3503
Coefficients
95.0614
Standard Eror
26.9183
Lower 95%
-150, 2009
Upper 95%
39.9218
4.5513
P-value
Intercept
Download
t Stat
3.5315
9.2992
0.0015
0.0000
3.7297
0.4011
2.9082
Download Residual Plot
120
100
80
60
40
20
-20
40
-60
-80
-100
0.00
20.00
40.00
60.00
80.00
100.00
120.00
Download
Normal Probability Plot
120
100
80
60
40
20
-20
........
-40
-60
80
100
-2
-1
1.
3.
7 Value
Residuals
Residuals
Transcribed Image Text: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: Regression Statistics Multiple R R Square Adjusted R Square Standard Error 0.8691 0.7554 0.7467 44.4765 Observations 30.0000 ANOVA SS 171062.9193 171062.9193 Significance F 0.0000 df MS Regression AResidual 1 86.4759 28 55388.4309 1978. 1582 Total 29 226451.3503 Coefficients 95.0614 Standard Eror 26.9183 Lower 95% -150, 2009 Upper 95% 39.9218 4.5513 P-value Intercept Download t Stat 3.5315 9.2992 0.0015 0.0000 3.7297 0.4011 2.9082 Download Residual Plot 120 100 80 60 40 20 -20 40 -60 -80 -100 0.00 20.00 40.00 60.00 80.00 100.00 120.00 Download Normal Probability Plot 120 100 80 60 40 20 -20 ........ -40 -60 80 100 -2 -1 1. 3. 7 Value Residuals Residuals
Referring to Table 12-11, which of the following is the correct interpretation for the coefficient of determination?
O A.
74.67% of the variation in revenue can be explained by the variation in the number of downloads.
В.
75.54% of the variation in revenue can be explained by the variation in the number of downloads.
74.67% of the variation in the number of downloads can be explained by the variation in revenue.
D.
75.54% of the variation in the number of downloads can be explained by the variation in revenue.
Transcribed Image Text:Referring to Table 12-11, which of the following is the correct interpretation for the coefficient of determination? O A. 74.67% of the variation in revenue can be explained by the variation in the number of downloads. В. 75.54% of the variation in revenue can be explained by the variation in the number of downloads. 74.67% of the variation in the number of downloads can be explained by the variation in revenue. D. 75.54% of the variation in the number of downloads can be explained by the variation in revenue.
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