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

question 99

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, 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:

Underapplied Overhead

A situation in which the allocated manufacturing overhead costs are less than the actual overhead incurred, leading to a variance in costing.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred, leading to adjustments in financial reporting.

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are less than the actual costs incurred.

Overapplied Manufacturing Overhead

A condition where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred.