TABLE 14-12 As a Project for His Business Statistics Class,a Student Examined

question 5

Multiple Choice

TABLE 14-12
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 whether the parking is on or off campus.The population regression model hypothesized is Y_i = α + β₁X_1i + β₂X_2i + ε
where
Y is the meter price per hour.
X₁ is the number of blocks to the quad.
X₂ is a dummy variable that takes the value 1 if the meter is located on campus and 0 otherwise.
The following Excel results are obtained.
-Referring to Table 14-12,what is the correct interpretation for the estimated coefficient for X₂?

• A)Holding the effect of the distance from the quad constant,the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus.
• B)Holding the effect of the distance from the quad constant,the estimated mean costs for parking off campus is $0.16 per hour more than parking on campus.
• C)Holding the effect of the distance from the quad constant,the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus for each additional block away from the quad.
• D)Holding the effect of the distance from the quad constant,the estimated mean costs for parking off campus is $0.16 per hour more than parking on campus for each additional block away from the quad.

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