Instruction 13 -Referring to Instruction 13

question 116

Multiple Choice

Instruction 13.9
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, number of city blocks to the centre of the university and one of the three jurisdictions: on campus, in the CBD and off campus or outside of the CBD and off campus. The population regression model hypothesised is:
Yi = ? + ?₁x_1i + ?₂x_2i + ?₃x_2i + ?_i
Where
Y is the meter price
x₁ is the number of blocks to the centre of the university
x₂ is a dummy variable that takes the value 1 if the meter is located in the CBD 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 the CBD and off campus, and the value 0 otherwise
The following Excel results are obtained:
$\begin{array}{|l|r|}\hline\text { Regression } & \text { Statistics } \\\hline \text { Multiple R } & 0.9659 \\\hline \text { R Square } & 0.9331 \\\hline \text { Adj. R Square } & 0.9294 \\\hline \text { Standard } & \\\text { Error } & 0.0327 \\\hline \text { Observations } & 58\\\hline\end{array}$

$\begin{array}{|c|c|c|c|c|c|}\hline\text { ANOVA }\\\hline & d & \text { SS } & \mathrm{MS} & F & \text { Signif } F \\\hline \text { Regression } & 3 & 0.8094 & 0.2698 & 251.1995 & 0.0000 \\\hline \text { Residual } & 54 & 0.058 \mathrm{~d} & 0.0010 & & \\\hline \text { Total } & 57 & 0.8675 & & & \\\hline\end{array}$

$\begin{array}{|l|r|r|r|r|}\hline & \text { Coef } & \text { Stol Error } & \text { t Stat } & p \text {-value } \\\hline \text { Intercept } & 0.5118 & 0.013 & 37.4675 & 2.4904 \\\hline X_{1} & -0.0045 & 0.0034 & -1.3276 & 0.1898 \\\hline X_{2} & -0.2392 & 0.0123 & -19.3942 & 0.0000 \\\hline X_{3} & -0.0002 & 0.0123 & -0.0214 & 0.9829 \\\hline\end{array}$
-Referring to Instruction 13.9,predict the meter rate per hour if one parks outside of the CBD and off campus three blocks from the centre of the university.

• A) $0.4981
• B) $0.2589
• C) $0.0139
• D) $0.2604

---

Definitions:

Scapula

Also known as the shoulder blade, it is a flat, triangular bone located in the upper back which connects the humerus with the clavicle.

Humerus

The long bone in the upper arm or forelimb running from the shoulder to the elbow, key to movements of the upper limb.

Coracoid Process

A small hook-like structure on the lateral edge of the superior anterior portion of the scapula.

Scapula

A flat, triangular-shaped bone located in the upper back that connects the humerus (upper arm bone) with the clavicle (collarbone).