SCENARIO 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 whether the parking is on or off campus.The population regression model hypothesized is where Y is the meter price per hour is the number of blocks to the quad is a dummy variable that takes the value 1 if the meter is located on campus and 0 otherwise The following Excel results are obtained.
-Referring to Scenario 14-12, what is the correct interpretation for the estimated coefficient for
A)Holding the effect of the distance from the quad constant, the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus.
B)Holding the effect of the distance from the quad constant, the estimated mean costs for parking off campus is $0.16 per hour more than parking on campus.
C)Holding the effect of the distance from the quad constant, the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus for each Additional block away from the quad.
D)Holding the effect of the distance from the quad constant, the estimated mean costs for parking off campus is $0.16 per hour more than parking on campus for each Additional block away from the quad.

Question

SCENARIO 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 whether the parking is on or off campus.The population regression model hypothesized is  where Y is the meter price per hour  is the number of blocks to the quad  is a dummy variable that takes the value 1 if the meter is located on campus and 0 otherwise The following Excel results are obtained. 
-Referring to Scenario 14-12, what is the correct interpretation for the estimated coefficient for 
A)Holding the effect of the distance from the quad constant, the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus. 
B)Holding the effect of the distance from the quad constant, the estimated mean costs for parking off campus is $0.16 per hour more than parking on campus. 
C)Holding the effect of the distance from the quad constant, the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus for each Additional block away from the quad. 
D)Holding the effect of the distance from the quad constant, the estimated mean costs for parking off campus is $0.16 per hour more than parking on campus for each Additional block away from the quad.

Quizplus · Accepted Answer

The estimated coefficient for the dummy variable "on campus" is 0.16. This means that, holding distance from the quad constant, the estimated mean cost for parking on campus is $0.16 per hour more than the mean cost for parking off campus. The estimated coefficient for the dummy variable 11ebc114_12ba_7bef_8acb_4b16772aa984_TB8562_11 is 0.16. This means that, holding the effect of distance from the quad constant, the estimated mean costs for parking on campus is $0.16 per hour more than parking off campus.

SCENARIO 14-12 as a Project for His Business Statistics Class