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

question 124

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 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 14-12, if one is already outside of downtown and off campus but decides to park 3 more blocks from the quad, the estimated average 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:

Evaluating Positions

The process of assessing and analyzing the strengths, weaknesses, and potential outcomes of different stances in negotiation or conflict resolution.

Propose Solutions

The act of presenting strategies or plans of action to solve specific problems or challenges.

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Regions or areas within a country, defined for administrative purposes, where the judiciary operates and has authority.

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