TABLE 17-7 As a Project for His Business Statistics Class,a Student Examined

question 269

Multiple Choice

TABLE 17-7
As a project for his business statistics class,a student examined the factors that determined parking meter rates throughout the campus area.Data were collected for the price per hour of parking,blocks to the quadrangle,and one of the three jurisdictions: on campus,in downtown and off campus,or outside of downtown and off campus.The population regression model hypothesized is
Y_i = α + β₁X_1i + β₂X_2i + β₃X_3i + ε
where
Y is the meter price
X₁ is the number of blocks to the quad
X₂ is a dummy variable that takes the value 1 if the meter is located in downtown and off campus and the value 0 otherwise
X₃ is a dummy variable that takes the value 1 if the meter is located outside of downtown and off campus,and the value 0 otherwise
The following Excel results are obtained.
-Referring to Table 17-7,if one is already outside of downtown and off campus but decides to park 3 more blocks from the quad,the estimated mean parking meter rate will

• A)decrease by 0.0045.
• B)decrease by 0.0135.
• C)decrease by 0.0139.
• D)decrease by 0.4979.

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Definitions:

Extraction Cost

The expenses associated with the removal of resources or raw materials from their natural setting.

Optimal Quantity

The amount of a product or service that achieves the best balance between costs and benefits, maximizing utility or profit.

Extract

To remove or take out something by physical or chemical process, often used in reference to natural resources.

Interest Rates

The cost of borrowing money or the return on invested funds, typically expressed as a percentage of the principal amount per year.