SCENARIO 13-12
as a Project for His Business Statistics Class $\alpha$

Multiple Choice

SCENARIO 13-12
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
Yi = $\alpha$ + $\beta$ 1 X1i + $\beta$ 2 X 2i + $\varepsilon$
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. $\begin{array}{l}\begin{array}{lr}\hline{\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.5536 \\\text { R Square } & 0.3064 \\\text { Adjusted R Square } & 0.2812 \\\text { Standard Error } & 0.4492 \\\text { Observations } & 58 \\\hline\end{array}\\\\\text { ANOVA }\\\begin{array}{lrrrrr}\hline &d f & \text { SS } &M S & F &\text { Significance } F\\\hline \text { Regression } & 2 & 4.9035 & 2.4518 & 12.1501 & 0.0000 \\\text { Residual } & 55 & 11.0984 & 0.2018 & & \\\text { Total } & 57 & 16.0019 & &\\\hline \end{array}\\\\\begin{array}{lrrrrrr}\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 99\% } & \text { Upper 99\% } \\\hline \text { Intercept } & 1.6500 & 0.2028 & 8.1359 & 0.0000 & 1.1089 & 2.1912 \\\text { Block } & -0.2504 & 0.0529 & -4.7355 & 0.0000 & -0.3915 & -0.1093 \\\text { Campus } & 0.1552 & 0.1297 & 1.1966 & 0.2366 & -0.1908 & 0.5011 \\\hline\end{array}\end{array}$

-Referring to SCENARIO 13-12, 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.