A computer software developer would like to use the number of downloads (in hund

Question

A computer software developer would like to use the number of downloads (in hundreds) 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.

State the regression equation. (Please remember to include the units

What is the correct interpretation for the slope coefficient?

Predict the revenue when the number of downloads is 3000 downloads (i.e. 30 hundred downloads).  

What are the lower and upper limits of the 95% confidence interval estimate for population slope?

Lower limit =

Upper limit =

Regression Statistics Multiple R 0.8691 0.7554 R Square 0.7467 Adjusted R Square 44.4765 Standard Error 30.0000 Observations ANOVA SS MS E Significance F 86.4759 0.0000 Regression 171062.9193 171062.9193 Residual 28 55388.4309 1978.1582 Total 29 226451.3503 P-value Coefficients Standard Error t Stat Lower 95% Upper 95% -95.0614 26.9183 0.0015 Intercept -3.5315 150.2009 -39.9218 0.0000 4.5513 3.7297 9.2992 Download 0.40 11 2.9082

Explanation / Answer

Regression equation:

Revenue (In thousand of dollars) = -95.0614 + 3.7297 * Downloads (In hundreds)

Interpretation of slope coefficient:

The slope is 3.7297. This indicates that for every 100 unit increase in the downloads, revenue is increased by $3729.7.

Prediction of revenue when downloads = 30 hundred:

Revenue = -95.0614 + 3.7297*30 = 16.8296 thousand dollars

Upper and lower limit of 95% confidence for population slope:

Lower Limit = 2.9082

Upper Limit = 4.5513

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