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

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 whether the parking is on or off campus.The population regression model hypothesized is Y_i = α + β₁X_1i + β₂X_2i + ε
where
Y is the meter price per hour.
X₁ is the number of blocks to the quad.
X₂ 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 Table 14-12,what is the correct interpretation for the estimated coefficient for X₂?

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.