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

question 327

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 Yᵢ = α + β₁X₁ᵢ + β₂X₂ᵢ + β₃X₃ᵢ + 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, what is the correct interpretation for the estimated coefficient for X₂?

• A) Holding the effect of the other independent variables constant, the estimated mean difference in costs between parking on campus, and parking outside of downtown and off campus is -$0.24 per hour.
• B) Holding the effect of the other independent variables constant, the estimated mean difference in costs between parking in downtown and off campus, and parking on campus is -$0.24 per hour.
• C) Holding the effect of the other independent variables constant, the estimated mean difference in costs between parking in downtown and off campus, and parking outside of downtown and off campus is -$0.24 per hour.
• D) Holding the effect of the other independent variables constant, the estimated mean difference in costs between parking in downtown and off campus, and parking either outside of downtown and off campus or on campus is -$0.24 per hour.

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Definitions:

Network Effect

The phenomenon whereby a product or service gains additional value as more people use it, enhancing its utility and attraction.

Collective Intelligence

The shared or group intelligence that emerges from the collaboration, collective efforts, and competition of many individuals and appears in consensus decision making.

Algorithmic Tracking

The use of algorithms to monitor, analyze, and respond to data patterns, often for purposes like tracking user behavior or optimizing digital experiences.

Interruption-Disruption Model

A theory describing how new technologies or practices can displace established ones by interrupting the status quo.