TABLE 14-13
as a Project for His Business $Y_{i}=\alpha+\beta_{1} X_{1 i}+\beta_{2} X_{2 i}+\beta_{3} X_{3 i}+\varepsilon$

question 258

Multiple Choice

TABLE 14-13
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
$Y_{i}=\alpha+\beta_{1} X_{1 i}+\beta_{2} X_{2 i}+\beta_{3} X_{3 i}+\varepsilon$


where Y is the meter price;
^X1 ^{is the number of blocks to the quad;
X}2 ^{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.
$\begin{array}{lc}\hline \text {Regression Statistics } \\\hline \text {Multiple R} & 0.9659 \\ \text {R Square}& 0.9331 \\ \text {Adjusted R Square} & 0.9294 \\ \text {Standard Error }& 0.0327 \\ \text {Observations} & 58 \\\hline\end{array}$

ANOVA
$\begin{array}{lrcccr}\hline & \text { d f } & \text { SS} & \text { M S } & \text { F }& \text { Significance F }\\\hline \text { Regression} & 3 & 0.8094 & 0.2698 & 251.1995 & 1.0964 \mathrm{E}-31 \\ \text { Residual }& 54 & 0.0580 & 0.0010 & & \\ \text { Total} & 57 & 0.8675 & & & \\\hline\end{array}$

$\begin{array}{lcccl}\hline & \text { Coefficients} & \text {Standard Error }& \text {t Stat }& \text { p-value} \\\hline \text {Intercept} & 0.5118 & 0.0136 & 37.4675 & 2.4904 \\\mathrm{X1 } & -0.0045 & 0.0034 & -1.3276 & 0.1898 \\\mathrm{X2 } & -0.2392 & 0.0123 & -19.3942 & 5.3581 \mathrm{E}-26 \\\mathrm{X3 } & -0.0002 & 0.0123 & -0.0214 & 0.9829 \\\hline\end{array}$

-Referring to Table 14-13, what is the correct interpretation for the estimated coefficient for X₂?

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Definitions:

Optimum

The most favorable condition or degree of something that achieves the best possible outcome or efficiency.

Problem-Solving Technique

Approaches or methods used to identify solutions to specific challenges or barriers.

Linear Programming

A mathematical method used to find the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships.

Constraint

A limitation or restriction in a process, system, or activity that affects its performance or capacity.