TABLE 17-7
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 + β 1 X 1 i + β 2 X 2 i + β 3 X 3 i + ε
where
Y is the meter price
X 1 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
X 3 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 17-7,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.

Question

TABLE 17-7
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 + β 1 X 1 i + β 2 X 2 i + β 3 X 3 i + ε
where
Y is the meter price
X 1 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
X 3 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 17-7,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.

Quizplus · Accepted Answer

The estimated mean parking meter rate decreases by 0.0135 for each additional block parked away from the quad, as indicated by the coefficient for the distance variable in the regression model.

TABLE 17-7 As a Project for His Business Statistics Class,a Student Examined